Have Chaowei Power Holdings Insiders Been Selling Stock?

Some Chaowei Power Holdings Limited (HKG:951) shareholders may be a little concerned to see that the Chairman & CEO, Mingming Zhou, recently sold a substantial HK$16m worth of stock at a price of HK$1.45 per share. However, that sale only accounted for 3.8% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Chaowei Power Holdings

The Last 12 Months Of Insider Transactions At Chaowei Power Holdings

In fact, the recent sale by Mingming Zhou was the biggest sale of Chaowei Power Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$1.45. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 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!

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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. Chaowei Power Holdings insiders own about HK$717m worth of shares (which is 45% of the company). 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 Chaowei Power Holdings Tell Us?

An insider hasn't bought Chaowei Power Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Chaowei Power Holdings has 5 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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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.