Despite Hitting HK$0.99, Ziyuanyuan Holdings Group Insiders Still Sold Too Soon

Ziyuanyuan Holdings Group Limited's (HKG:8223) stock price has dropped 23% in the previous week, but insiders who sold CN¥2.0m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CN¥2.05 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Ziyuanyuan Holdings Group

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Zhiwei Tian, sold HK$2.0m worth of shares at a price of HK$2.05 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.99. So it may not shed much light on insider confidence at current levels. Zhiwei Tian was the only individual insider to sell over the last year. Notably Zhiwei Tian was also the biggest buyer, having purchased HK$995k worth of shares.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ziyuanyuan Holdings Group

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Ziyuanyuan Holdings Group Insiders Bought Stock Recently

Over the last quarter, Ziyuanyuan Holdings Group insiders have spent a meaningful amount on shares. We can see that Executive Director Zhiwei Tian paid HK$995k for shares in the company. No-one sold. This makes one think the business has some good points.

Does Ziyuanyuan Holdings Group Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ziyuanyuan Holdings Group insiders own 67% of the company, currently worth about HK$311m 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.

What Might The Insider Transactions At Ziyuanyuan Holdings Group Tell Us?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Ziyuanyuan Holdings Group insiders are fairly aligned, and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Ziyuanyuan Holdings Group (2 can't be ignored) you should be aware of.

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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.