Insiders Sold China Supply Chain Holdings At HK$0.13, Meanwhile Stock Sits Near HK$0.017

China Supply Chain Holdings Limited's (HKG:3708) value has fallen 15% in the last week, but insiders who sold HK$742k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of HK$0.13 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for China Supply Chain Holdings

The Last 12 Months Of Insider Transactions At China Supply Chain Holdings

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Aizhong Lai, sold HK$647k worth of shares at a price of HK$0.13 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.017. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Aizhong Lai.

Aizhong Lai divested 5.74m shares over the last 12 months at an average price of HK$0.13. 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!

I will like China Supply Chain Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Supply Chain Holdings insiders own 58% of the company, worth about HK$56m. 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 Do The China Supply Chain Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded China Supply Chain Holdings 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 China Supply Chain Holdings 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. You'd be interested to know, that we found 2 warning signs for China Supply Chain Holdings and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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