Anyone interested in JNBY Design Limited (HKG:3306) should probably be aware that the CEO & Executive Director, Huating Wu, recently divested HK$2.6m worth of shares in the company, at an average price of HK$15.18 each. On the bright side, that sale was only 3.2% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At JNBY Design
In fact, the recent sale by CEO & Executive Director Huating Wu was not their only sale of JNBY Design shares this year. They previously made an even bigger sale of -HK$5.1m worth of shares at a price of HK$10.44 per share. That means that even when the share price was below the current price of HK$15.02, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 8.3% of Huating Wu's holding.
Huating Wu ditched 672.50k shares over the year. The average price per share was CN¥11.66. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that JNBY Design insiders own 64% of the company, worth about HK$4.9b. 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 JNBY Design Insiders?
An insider hasn't bought JNBY Design stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, JNBY Design makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JNBY Design. You'd be interested to know, that we found 2 warning signs for JNBY Design and we suggest you have a look.
But note: JNBY Design 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.