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Have Insiders Sold Blue River Holdings Shares Recently?

Simply Wall St ·  Aug 22, 2023 18:11

Some Blue River Holdings Limited (HKG:498) shareholders may be a little concerned to see that the MD & Executive Chairman of the Board, Kai Sing Kwong, recently sold a substantial HK$11m worth of stock at a price of HK$0.28 per share. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Blue River Holdings

The Last 12 Months Of Insider Transactions At Blue River Holdings

Notably, that recent sale by Kai Sing Kwong is the biggest insider sale of Blue River Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.34). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 24% of Kai Sing Kwong's holding.

In the last year Blue River Holdings insiders didn't buy any company stock. 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!

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SEHK:498 Insider Trading Volume August 22nd 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Blue River Holdings Boast High Insider Ownership?

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. Blue River Holdings insiders own about HK$158m worth of shares (which is 45% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Blue River Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Blue River Holdings. To that end, you should learn about the 5 warning signs we've spotted with Blue River Holdings (including 2 which are a bit unpleasant).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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