Zhongshen Jianye Holding Insider Lowered Holding By 19% During Last Year

Looking at Zhongshen Jianye Holding Limited's (HKG:2503 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Zhongshen Jianye Holding

The Last 12 Months Of Insider Transactions At Zhongshen Jianye Holding

The insider, Ling Hou, made the biggest insider sale in the last 12 months. That single transaction was for HK$4.9m worth of shares at a price of HK$0.81 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.73. So it is hard to draw any strong conclusion from it. Ling Hou was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Zhongshen Jianye Holding

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. Zhongshen Jianye Holding insiders own about HK$277m worth of shares (which is 74% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Zhongshen Jianye Holding Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Zhongshen Jianye Holding shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Zhongshen Jianye Holding insiders selling. 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. Be aware that Zhongshen Jianye Holding is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course Zhongshen Jianye Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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.