Despite Hitting HK$0.26, China Glass Holdings Insiders Still Sold Too Soon

China Glass Holdings Limited's (HKG:3300) stock price has dropped 13% in the previous week, but insiders who sold CN¥796k in stock over the past year have had less luck. Given that the average selling price of CN¥0.33 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At China Glass Holdings

The insider, Tan Hung Sze, made the biggest insider sale in the last 12 months. That single transaction was for HK$796k worth of shares at a price of HK$0.33 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.26. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tan Hung Sze.

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!

View our latest analysis for China Glass Holdings

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Insiders At China Glass Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of China Glass Holdings shares. In total, insider Tan Hung Sze sold HK$796k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that China Glass Holdings insiders own 7.8% of the company, worth about HK$37m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About China Glass Holdings 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. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that China Glass Holdings is showing 4 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

But note: China Glass 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.