15% Of This China Mengniu Dairy Insider's Holdings Were Sold

Insiders were net sellers of China Mengniu Dairy Company Limited's (HKG:2319 ) stock during the past year. That is, insiders sold more stock than they bought.

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.

See our latest analysis for China Mengniu Dairy

China Mengniu Dairy Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Vice-Chairman, Minfang Lu, sold HK$13m worth of shares at a price of HK$26.33 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$14.76. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Minfang Lu.

Minfang Lu sold a total of 634.00k shares over the year at an average price of CN¥26.40. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that China Mengniu Dairy insiders own 0.1% of the company, worth about HK$84m. 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 China Mengniu Dairy Insiders?

It doesn't really mean much that no insider has traded China Mengniu Dairy shares in the last quarter. Still, the insider transactions at China Mengniu Dairy in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Mengniu Dairy. Case in point: We've spotted 2 warning signs for China Mengniu Dairy you should be aware of.

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.