Who Has Been Selling Yanzhou Coal Mining Company Limited (HKG:1171) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Yanzhou Coal Mining Company Limited (HKG:1171), 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.

We don't think shareholders should simply follow insider transactions. 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'.

Check out our latest analysis for Yanzhou Coal Mining

Yanzhou Coal Mining Insider Transactions Over The Last Year

The insider, Xiaolei Zhang, made the biggest insider sale in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$6.90 each. So we know that an insider sold shares at around the present share price of HK$6.33. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Xiaolei Zhang was the only individual insider to sell shares in the last twelve months.

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

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Yanzhou Coal Mining

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Yanzhou Coal Mining insiders own 2.0% of the company, worth about HK$984m. 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 Do The Yanzhou Coal Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Yanzhou Coal Mining 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 Yanzhou Coal Mining insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Yanzhou Coal Mining (of which 1 is potentially serious!) you should know about.

Of course Yanzhou Coal Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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