Some Blue River Holdings Limited (HKG:498) shareholders may be a little concerned to see that insider Kitchell Bin recently sold a substantial HK$4.3m worth of stock at a price of HK$0.86 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.6%.
Check out our latest analysis for Blue River Holdings
Blue River Holdings Insider Transactions Over The Last Year
Notably, that recent sale by insider Kitchell Bin was not the only time they traded Blue River Holdings shares this year. Earlier in the year, they spent HK$160m to buy shares at HK$0.51 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.91. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Blue River Holdings insiders own 44% of the company, currently worth about HK$438m 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 Blue River Holdings Insiders?
An insider sold Blue River Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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. When we did our research, we found 2 warning signs for Blue River Holdings (1 is concerning!) that we believe deserve your full attention.
But note: Blue River Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.