Insiders Of BOSA Technology Holdings Retain HK$12m Of Investment Selling At Higher Prices

While it’s been a great week for BOSA Technology Holdings Limited (HKG:8140) shareholders after stock gained 10%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell HK$12m worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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BOSA Technology Holdings Insider Transactions Over The Last Year

The CEO & Executive Director Su-I Lim made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.0m worth of shares at a price of HK$0.098 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.13. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Tek-Sian Kwan ditched 120.30m shares over the year. The average price per share was HK$0.10. 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!

Check out our latest analysis for BOSA Technology Holdings

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

BOSA Technology Holdings Insiders Are Selling The Stock

The last three months saw some BOSA Technology Holdings insider selling. The selling netted HK$3.3m for Non-Executive Chairman Tek-Sian Kwan. But HK$3.0m was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. BOSA Technology Holdings insiders own 70% of the company, currently worth about HK$71m based on the recent share price. 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 Do The BOSA Technology Holdings Insider Transactions Indicate?

The stark truth for BOSA Technology Holdings is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since BOSA Technology Holdings 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BOSA Technology Holdings. Case in point: We've spotted 2 warning signs for BOSA Technology Holdings you should be aware of.

But note: BOSA Technology Holdings 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.