BGMC International Decline Means Insider Profits Down To RM865k

Insiders who bought BGMC International Limited (HKG:1693) stock lover the last 12 months are probably not as affected by last week’s 19% loss. Reason being, despite the recent loss, insiders original purchase value of RM926.4k is now worth RM1.79m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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BGMC International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Guohua Zhou for HK$926k worth of shares, at about HK$1.20 per share. We do like to see buying, but this purchase was made at well below the current price of HK$2.32. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for BGMC International

BGMC International is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

BGMC International Insiders Are Selling The Stock

We have seen a bit of insider selling at BGMC International, over the last three months. insider Guohua Zhou only netted HK$244k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BGMC International insiders own 68% of the company, currently worth about HK$62m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At BGMC International Tell Us?

An insider sold BGMC International shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for BGMC International you should know about.

Of course BGMC International may not be the best stock to buy. So you may wish to see this free collection of high quality 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.