Insider Sellers Might Regret Selling Zhengwei Group Holdings Shares at a Lower Price Than Current Market Value

Zhengwei Group Holdings Company Limited's (HKG:2147) value has fallen 17% in the last week, but insiders who sold CN¥17m worth of stock over the last year have had less success. The average selling price of CN¥0.16 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Zhengwei Group Holdings

The Last 12 Months Of Insider Transactions At Zhengwei Group Holdings

The Executive Director, Qiuyun Lin, made the biggest insider sale in the last 12 months. That single transaction was for HK$7.2m worth of shares at a price of HK$0.16 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.034. So it may not shed much light on insider confidence at current levels. Qiuyun Lin was the only individual insider to sell shares in the last twelve months.

Qiuyun Lin ditched 103.72m shares over the year. The average price per share was CN¥0.16. 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!

I will like Zhengwei Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Zhengwei Group Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Zhengwei Group Holdings insiders own about HK$7.9m worth of shares. That equates to 21% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Zhengwei Group Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Zhengwei Group Holdings insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Zhengwei Group Holdings (including 2 which shouldn't be ignored).

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 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.