This Insider Has Just Sold Shares In Luyuan Group Holding (Cayman)

Some Luyuan Group Holding (Cayman) Limited (HKG:2451) shareholders may be a little concerned to see that insider David Dingman recently sold a substantial HK$19m worth of stock at a price of HK$7.37 per share. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

View our latest analysis for Luyuan Group Holding (Cayman)

The Last 12 Months Of Insider Transactions At Luyuan Group Holding (Cayman)

In fact, the recent sale by David Dingman was the biggest sale of Luyuan Group Holding (Cayman) shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$7.33. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Luyuan Group Holding (Cayman) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Luyuan Group Holding (Cayman) insiders own 67% of the company, worth about HK$2.1b. 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 Does This Data Suggest About Luyuan Group Holding (Cayman) Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Luyuan Group Holding (Cayman) is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. When we did our research, we found 2 warning signs for Luyuan Group Holding (Cayman) (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Luyuan Group Holding (Cayman) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.