This Beijing Enterprises Water Group Insider Reduced Their Stake By 89%

Viewing insider transactions for Beijing Enterprises Water Group Limited's (HKG:371 ) 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 insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Beijing Enterprises Water Group

The Last 12 Months Of Insider Transactions At Beijing Enterprises Water Group

Notably, that recent sale by Haifeng Li is the biggest insider sale of Beijing Enterprises Water Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$1.91. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was 89% of Haifeng Li's holding.

You can see a visual depiction of insider transactions (by companies and 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Beijing Enterprises Water Group Insiders Are Selling The Stock

The last three months saw significant insider selling at Beijing Enterprises Water Group. Specifically, VP & Executive Director Haifeng Li ditched HK$36m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Beijing Enterprises Water Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Beijing Enterprises Water Group insiders own 3.9% of the company, worth about HK$753m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Beijing Enterprises Water Group Tell Us?

An insider sold Beijing Enterprises Water Group 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 Beijing Enterprises Water Group is growing earnings. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Beijing Enterprises Water Group.

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.