We wouldn't blame Zhongmin Baihui Retail Group Ltd. (SGX:5SR) shareholders if they were a little worried about the fact that Kaitong Chen, the CEO & Executive Director recently netted about S$6.0m selling shares at an average price of S$1.00. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
See our latest analysis for Zhongmin Baihui Retail Group
Zhongmin Baihui Retail Group Insider Transactions Over The Last Year
Notably, that recent sale by Kaitong Chen is the biggest insider sale of Zhongmin Baihui Retail Group shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (S$0.64). So it is hard to draw any strong conclusion from it.
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!SGX:5SR Insider Trading Volume December 25th 2022
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Does Zhongmin Baihui Retail Group Boast High Insider Ownership?
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. Zhongmin Baihui Retail Group insiders own 75% of the company, currently worth about S$92m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Zhongmin Baihui Retail Group Insiders?
An insider sold Zhongmin Baihui Retail Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Zhongmin Baihui Retail Group (2 can't be ignored!) that we believe deserve your full attention.
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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.