We wouldn't blame SJM Holdings Limited (HKG:880) shareholders if they were a little worried about the fact that Shu Fai So, the Executive Vice Chairman & CEO recently netted about HK$83m selling shares at an average price of HK$2.90. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

Check out our latest analysis for SJM Holdings

The Last 12 Months Of Insider Transactions At SJM Holdings

Notably, that recent sale by Shu Fai So is the biggest insider sale of SJM Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$2.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid HK$30m for 9.98m shares. But insiders sold 30.00m shares worth HK$87m. Shu Fai So sold a total of 30.00m shares over the year at an average price of HK$2.90. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of SJM Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that SJM Holdings insiders own 9.7% of the company, worth about HK$1.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About SJM Holdings Insiders?

Unfortunately, there has been more insider selling of SJM Holdings stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in SJM Holdings.

Of course SJM Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.