We wouldn't blame JNBY Design Limited (HKG:3306) shareholders if they were a little worried about the fact that Huating Wu, the CEO & Executive Director recently netted about HK$5.1m selling shares at an average price of HK$10.44. However, that sale only accounted for 8.3% of their holding, so arguably it doesn't say much about their conviction.
Check out our latest analysis for JNBY Design
The Last 12 Months Of Insider Transactions At JNBY Design
In fact, the recent sale by Huating Wu was the biggest sale of JNBY Design shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of HK$10.54, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 8.3% of Huating Wu's holding.
Huating Wu ditched 500.00k shares over the year. The average price per share was CN¥10.44. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like JNBY Design 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
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. I reckon it's a good sign if insiders own a significant number of shares in the company. JNBY Design insiders own 65% of the company, currently worth about HK$3.4b 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.
What Might The Insider Transactions At JNBY Design Tell Us?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since JNBY Design is profitable and growing, we're not too worried by this. 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 JNBY Design. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of JNBY Design.
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.