Don't Ignore The Insider Selling In China Anchu Energy Storage Group

Some China Anchu Energy Storage Group Limited (HKG:2399) shareholders may be a little concerned to see that the Founder & Executive Chairman, Kin Sun Kwok, recently sold a substantial HK$5.6m worth of stock at a price of HK$0.59 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

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China Anchu Energy Storage Group Insider Transactions Over The Last Year

In fact, the recent sale by Kin Sun Kwok was the biggest sale of China Anchu Energy Storage Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.68. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 21% of Kin Sun Kwok's stake.

Kin Sun Kwok ditched 43.05m shares over the year. The average price per share was CN¥0.48. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for China Anchu Energy Storage Group

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that China Anchu Energy Storage Group insiders own 41% of the company, worth about HK$857m. 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?

An insider hasn't bought China Anchu Energy Storage Group 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Anchu Energy Storage Group. For example, China Anchu Energy Storage Group has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.