Don't Ignore The Fact That This Insider Just Sold Some Shares In Feiyang International Holdings Group Limited (HKG:1901)

We wouldn't blame Feiyang International Holdings Group Limited (HKG:1901) shareholders if they were a little worried about the fact that Binfeng He, the Chairman & CEO recently netted about HK$24m selling shares at an average price of HK$1.05. However, that sale only accounted for 6.3% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Feiyang International Holdings Group

Feiyang International Holdings Group Insider Transactions Over The Last Year

Notably, that recent sale by Binfeng He is the biggest insider sale of Feiyang International Holdings Group shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.75. So it may not tell us anything about how insiders feel about the current share price.

You can see the insider transactions (by companies and 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Feiyang International Holdings Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Feiyang International Holdings Group insiders own 77% of the company, currently worth about HK$288m based on the recent share price. 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 Does This Data Suggest About Feiyang International Holdings Group Insiders?

An insider sold Feiyang International Holdings Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Feiyang International Holdings Group. To that end, you should learn about the 4 warning signs we've spotted with Feiyang International Holdings Group (including 2 which are significant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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