We wouldn't blame Bright Smart Securities & Commodities Group Limited (HKG:1428) shareholders if they were a little worried about the fact that Mow Lum Yip, the Executive Chairman recently netted about HK$28m selling shares at an average price of HK$1.71. However, that sale only accounted for 1.5% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Bright Smart Securities & Commodities Group

The Last 12 Months Of Insider Transactions At Bright Smart Securities & Commodities Group

Notably, that recent sale by Mow Lum Yip is the biggest insider sale of Bright Smart Securities & Commodities Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of HK$1.63. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid HK$10.0m for 8.80m shares. But they sold 51.43m shares for HK$86m. Mow Lum Yip ditched 51.43m shares over the year. The average price per share was HK$1.67. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Bright Smart Securities & Commodities Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bright Smart Securities & Commodities Group insiders own 64% of the company, currently worth about HK$1.8b based on the recent share price. 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 Do The Bright Smart Securities & Commodities Group Insider Transactions Indicate?

An insider sold Bright Smart Securities & Commodities Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Bright Smart Securities & Commodities Group is profitable and growing, we're not too worried by this. 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. Every company has risks, and we've spotted 3 warning signs for Bright Smart Securities & Commodities Group you should know about.

Of course Bright Smart Securities & Commodities Group 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.