China Anchu Energy Storage Group Founder & Executive Chairman Kin Sun Kwok Sells 47% Of Holding

We wouldn't blame China Anchu Energy Storage Group Limited (HKG:2399) shareholders if they were a little worried about the fact that Kin Sun Kwok, the Founder & Executive Chairman recently netted about HK$20m selling shares at an average price of HK$0.29. That sale reduced their total holding by 47% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for China Anchu Energy Storage Group

The Last 12 Months Of Insider Transactions At China Anchu Energy Storage Group

In fact, the recent sale by Founder & Executive Chairman Kin Sun Kwok was not their only sale of China Anchu Energy Storage Group shares this year. They previously made an even bigger sale of -HK$39m worth of shares at a price of HK$0.73 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$0.29. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 68.35m shares for HK$33m. But they sold 384.82m shares for HK$176m. In total, China Anchu Energy Storage Group insiders sold more than they bought 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!

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Does China Anchu Energy Storage Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. China Anchu Energy Storage Group insiders own about HK$329m worth of shares (which is 41% 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.

What Might The Insider Transactions At China Anchu Energy Storage Group Tell Us?

Unfortunately, there has been more insider selling of China Anchu Energy Storage Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To that end, you should learn about the 3 warning signs we've spotted with China Anchu Energy Storage Group (including 1 which is concerning).

Of course China Anchu Energy Storage Group 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.