Xingda International Holdings CFO & Executive Director Yuxiao Zhang Sells 100% Of Holding

Some Xingda International Holdings Limited (HKG:1899) shareholders may be a little concerned to see that the CFO & Executive Director, Yuxiao Zhang, recently sold a substantial HK$85m worth of stock at a price of HK$1.52 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Xingda International Holdings

Xingda International Holdings Insider Transactions Over The Last Year

The Executive Chairman Jinlan Liu made the biggest insider purchase in the last 12 months. That single transaction was for HK$103m worth of shares at a price of HK$1.88 each. That means that even when the share price was higher than HK$1.56 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 80.00m shares worth HK$150m. But they sold 56.18m shares for HK$85m. In total, Xingda International Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Xingda International Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Xingda International Holdings

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Xingda International Holdings insiders own 51% of the company, currently worth about HK$1.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Xingda International Holdings Tell Us?

An insider hasn't bought Xingda International Holdings stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Xingda International Holdings.

But note: Xingda International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.