Insiders Could Have Profited By Holding onto Xiangxing International Holding Shares Despite 11% Drop

Xiangxing International Holding Limited's (HKG:1732) stock price has dropped 11% in the previous week, but insiders who sold CN¥4.7m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CN¥0.47 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Xiangxing International Holding

Xiangxing International Holding Insider Transactions Over The Last Year

The Independent Non-Executive Director, Kee Cheung Ho, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.9m worth of shares at a price of HK$0.48 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$0.14. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Kee Cheung Ho.

Kee Cheung Ho ditched 9.98m shares over the year. The average price per share was CN¥0.47. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Xiangxing International Holding

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. We usually like to see fairly high levels of insider ownership. Xiangxing International Holding insiders own 47% of the company, currently worth about HK$76m 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 Xiangxing International Holding Insider Transactions Indicate?

The fact that there have been no Xiangxing International Holding insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Xiangxing International Holding insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Xiangxing International Holding (of which 1 is concerning!) you should know about.

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.