Insiders Of Clifford Modern Living Holdings Make A Tidy Sum Selling At CN¥0.64
While Clifford Modern Living Holdings Limited (HKG:3686) shareholders have had a good week with the stock up 10%, they shouldn't let their guards down. Although prices were relatively low, insiders chose to sell CN¥510k worth of stock in the past 12 months. This could be a sign of impending weakness.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Clifford Modern Living Holdings
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Lai Hung Man, for HK$510k worth of shares, at about HK$0.64 per share. That means that even when the share price was below the current price of HK$0.76, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 0.1% of Lai Hung Man's holding. Lai Hung Man was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Clifford Modern Living Holdings
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Clifford Modern Living Holdings
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Clifford Modern Living Holdings insiders own 73% of the company, currently worth about HK$563m 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.
So What Do The Clifford Modern Living Holdings Insider Transactions Indicate?
The fact that there have been no Clifford Modern Living Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Clifford Modern Living Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clifford Modern Living Holdings. Our analysis shows 3 warning signs for Clifford Modern Living Holdings (1 is concerning!) and we strongly recommend you look at these before investing.
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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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.