Have Insiders Sold Bonjour Holdings Shares Recently?

Anyone interested in Bonjour Holdings Limited (HKG:653) should probably be aware that the Executive Chairman of the Board, Jianwen Chen, recently divested HK$832k worth of shares in the company, at an average price of HK$0.069 each. However, the silver lining is that the sale only reduced their total holding by 1.3%, so we're hesitant to read anything much into it, on its own.

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Bonjour Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Executive Chairman of the Board Jianwen Chen was not the only time they traded Bonjour Holdings shares this year. They previously purchased HK$54m worth of shares at a price of HK$0.08 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.047). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jianwen Chen was also the biggest seller.

Over the last year, we can see that insiders have bought 675.44m shares worth HK$54m. But insiders sold 18.00m shares worth HK$1.2m. In total, Bonjour Holdings insiders bought more than they sold over the last year. 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Bonjour Holdings insiders own 48% of the company, worth about HK$42m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Bonjour Holdings Insiders?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bonjour Holdings. For example, Bonjour Holdings has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: Bonjour 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.