Selling Sunny Side Up Culture Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Sunny Side Up Culture Holdings Limited's (HKG:8082) value has fallen 14% in the last week, but insiders who sold HK$18m worth of stock over the last year have had less success. Given that the average selling price of HK$0.057 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

Check out our latest analysis for Sunny Side Up Culture Holdings

The Last 12 Months Of Insider Transactions At Sunny Side Up Culture Holdings

The insider, Bing Chui, made the biggest insider sale in the last 12 months. That single transaction was for HK$12m worth of shares at a price of HK$0.06 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.05. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Bing Chui.

Bing Chui sold a total of 310.80m shares over the year at an average price of HK$0.057. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Sunny Side Up Culture Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Sunny Side Up Culture Holdings. We can see that Non-Executive Director Xinying Ma paid HK$3.0m for shares in the company. No-one sold. This makes one think the business has some good points.

Does Sunny Side Up Culture Holdings Boast High Insider Ownership?

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. Sunny Side Up Culture Holdings insiders own about HK$32m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sunny Side Up Culture Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Sunny Side Up Culture Holdings insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Sunny Side Up Culture Holdings (1 is potentially serious!) and we strongly recommend you look at them before investing.

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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.