We wouldn't blame Future Bright Mining Holdings Limited (HKG:2212) shareholders if they were a little worried about the fact that Yuguo Li, the Executive Director recently netted about HK$20m selling shares at an average price of HK$0.25. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.
See our latest analysis for Future Bright Mining Holdings
The Last 12 Months Of Insider Transactions At Future Bright Mining Holdings
Notably, that recent sale by Yuguo Li is the biggest insider sale of Future Bright Mining Holdings shares that we've seen in the last year. That means that even when the share price was slightly below the current price of HK$0.25, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 17%of Yuguo Li's holding.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Future Bright Mining Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Future Bright Mining Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Future Bright Mining Holdings insiders own 49% of the company, worth about HK$108m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Future Bright Mining Holdings Insiders?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. 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 Future Bright Mining Holdings. You'd be interested to know, that we found 2 warning signs for Future Bright Mining Holdings and we suggest you have a look.
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 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.