Independent Non Executive Director Chung Bun Chan Just Sold A Bunch Of Shares In Li Ning Company Limited (HKG:2331)
Some Li Ning Company Limited (HKG:2331) shareholders may be a little concerned to see that the Independent Non Executive Director, Chung Bun Chan, recently sold a whopping CN¥5.3m worth of stock at a price of CN¥26.51 per share. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Li Ning
Li Ning Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Founder, Li Ning, for HK$22m worth of shares, at about HK$8.71 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$26.60. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 24% of Li Ning's holding.
Over the last year, we note insiders sold 2761120 shares worth HK$28m. Li Ning insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by 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 of Li Ning
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. Li Ning insiders own about HK$332m worth of shares. That equates to 0.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Li Ning Insiders?
An insider sold Li Ning shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Li Ning is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
