Investors may wish to note that the Co-Founder of Coslight Technology International Group Limited, Ke Xue Li, recently netted CN¥316k from selling stock, receiving an average price of CN¥1.61. It might not be a huge sale, but it did reduce their holding size 40%, hardly encouraging.
Coslight Technology International Group Insider Transactions Over The Last Year
Notably, that recent sale by Co-Founder Ke Xue Li was not the only time they sold Coslight Technology International Group shares this year. They previously made an even bigger sale of -HK$315.6k worth of shares at a price of HK$1.61 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of HK$1.62. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 40% of Ke Xue Li's holding.
Ke Xue Li sold a total of 224000 shares over the year at an average price of CN¥1.61. You can see the insider transactions (by 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!
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Insider Ownership of Coslight Technology International Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Coslight Technology International Group insiders own 71% of the company, worth about HK$430m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Coslight Technology International Group Tell Us?
An insider sold Coslight Technology International Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.