100% Of This BOSA Technology Holdings Insider's Holdings Were Sold

Viewing insider transactions for BOSA Technology Holdings Limited's (HKG:8140 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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BOSA Technology Holdings Insider Transactions Over The Last Year

The Non-Executive Chairman, Tek-Sian Kwan, made the biggest insider sale in the last 12 months. That single transaction was for HK$8.7m worth of shares at a price of HK$0.084 each. That means that even when the share price was below the current price of HK$0.10, 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. This single sale was 100% of Tek-Sian Kwan's stake. Tek-Sian Kwan was the only individual insider to sell over the last year.

Tek-Sian Kwan ditched 131.35m shares over the year. The average price per share was HK$0.094. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for BOSA Technology Holdings

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Insiders At BOSA Technology Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at BOSA Technology Holdings. Specifically, Non-Executive Chairman Tek-Sian Kwan ditched HK$8.7m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of BOSA Technology Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that BOSA Technology Holdings insiders own 57% of the company, worth about HK$46m. 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 BOSA Technology Holdings Insiders?

An insider hasn't bought BOSA Technology Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. Every company has risks, and we've spotted 3 warning signs for BOSA Technology Holdings (of which 1 is concerning!) you should know about.

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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.