Possible Bearish Signals With Autostreets Development Insiders Disposing Stock

In the last year, many Autostreets Development Limited (HKG:2443) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've discovered 2 warning signs about Autostreets Development. View them for free.

The Last 12 Months Of Insider Transactions At Autostreets Development

Over the last year, we can see that the biggest insider sale was by the insider, Zhuoheng Han, for HK$114m worth of shares, at about HK$4.00 per share. That means that an insider was selling shares at around the current price of HK$3.89. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Autostreets Development insiders didn't buy any company stock. 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!

View our latest analysis for Autostreets Development

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Autostreets Development

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Autostreets Development insiders own about HK$676m worth of shares. That equates to 21% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Autostreets Development Insiders?

It doesn't really mean much that no insider has traded Autostreets Development shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Autostreets Development insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Autostreets Development. Our analysis shows 2 warning signs for Autostreets Development (1 is significant!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.