Read This Before Buying Fresh Express Delivery Holdings Group Co., Limited (HKG:1175) Shares

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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Fresh Express Delivery Holdings Group Co., Limited (HKG:1175).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Fresh Express Delivery Holdings Group

The Last 12 Months Of Insider Transactions At Fresh Express Delivery Holdings Group

In the last twelve months, the biggest single sale by an insider was when Wei Zhang sold HK$20m worth of shares at a price of HK$0.27 per share. That is hardly a positive sign, even though it took place above the latest price (HK$0.20). So it is hard to draw any strong conclusion from it. Wei Zhang was the only individual insider to sell over the last year. Notably Wei Zhang was also the biggest buyer, having purchased HK$19m worth of shares.

You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this freelist of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Fresh Express Delivery Holdings Group, though insiders do hold about HK$2.8m worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At Fresh Express Delivery Holdings Group Tell Us?

It doesn't really mean much that no insider has traded Fresh Express Delivery Holdings Group shares in the last quarter. We don't take much encouragement from the transactions by Fresh Express Delivery Holdings Group insiders. And we're not picking up on high enough insider ownership to give us any comfort. Along with insider transactions, I recommend checking if Fresh Express Delivery Holdings Group is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: Fresh Express Delivery Holdings Group may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.