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$6.6m selling shares at an average price of HK$16.44. However, that sale only accounted for 6.2% of their holding, so arguably it doesn't say much about their conviction.
View our latest analysis for 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. So we know that an insider sold shares at around the present share price of HK$15.86. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Huating Wu ditched 1.23m shares over the year. The average price per share was CN¥13.69. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. 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 66% of the company, worth about HK$5.3b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
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. But since JNBY Design is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for JNBY Design 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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