Are Insiders Selling Feiyang International Holdings Group Limited (HKG:1901) Stock?

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 before you buy or sell Feiyang International Holdings Group Limited (HKG:1901), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

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.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Feiyang International Holdings Group

The Last 12 Months Of Insider Transactions At Feiyang International Holdings Group

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Binfeng He, sold HK$24m worth of shares at a price of HK$1.05 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.82). So it may not shed much light on insider confidence at current levels. Binfeng He was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Feiyang International Holdings Group insiders own 71% of the company, worth about HK$308m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Feiyang International Holdings Group Insiders?

It doesn't really mean much that no insider has traded Feiyang International Holdings Group shares in the last quarter. While we feel good about high insider ownership of Feiyang International Holdings Group, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Feiyang International Holdings Group. When we did our research, we found 3 warning signs for Feiyang International Holdings Group (2 are a bit concerning!) that we believe deserve your full attention.

But note: Feiyang International Holdings Group 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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