Investors may wish to note that the Independent Non-Executive Director of BOE Varitronix Limited, Ho Hwa Chu, recently netted HK$717k from selling stock, receiving an average price of HK$13.79. While that isn't a lot of money, it was a substantial 63% of their holding, so certainly isn't a good sign.

Check out our latest analysis for BOE Varitronix

BOE Varitronix Insider Transactions Over The Last Year

In fact, the recent sale by Independent Non-Executive Director Ho Hwa Chu was not their only sale of BOE Varitronix shares this year. They previously made an even bigger sale of -HK$866k worth of shares at a price of HK$12.37 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$13.74. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Ho Hwa Chu's holding.

Ho Hwa Chu ditched 152.00k shares over the year. The average price per share was HK$13.17. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of BOE Varitronix

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that BOE Varitronix insiders own 6.5% of the company, worth about HK$708m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About BOE Varitronix Insiders?

The insider sales have outweighed the insider buying, at BOE Varitronix, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that BOE Varitronix is growing earnings. 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. For example - BOE Varitronix has 2 warning signs we think you should be aware of.

Of course BOE Varitronix 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.