We wouldn't blame BOE Varitronix Limited (HKG:710) shareholders if they were a little worried about the fact that Chun-Shun Ko, a company insider, recently netted about HK$30m selling shares at an average price of HK$6.00. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
Check out our latest analysis for BOE Varitronix
BOE Varitronix Insider Transactions Over The Last Year
In fact, the recent sale by Chun-Shun Ko was the biggest sale of BOE Varitronix shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$6.26. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 13%of Chun-Shun Ko's holding.
All up, insiders sold more shares in BOE Varitronix than they bought, over the last year. 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!
I will like BOE Varitronix better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does BOE Varitronix 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. BOE Varitronix insiders own about HK$297m worth of shares. That equates to 6.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About BOE Varitronix Insiders?
An insider hasn't bought BOE Varitronix stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, BOE Varitronix makes money, and is growing profits. 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 BOE Varitronix. Be aware that BOE Varitronix is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
But note: BOE Varitronix 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 of direct interests only, but not derivative transactions or indirect interests.
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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.