63% Of This China Resources Beer (Holdings) Insider's Holdings Were Sold

From what we can see, insiders were net sellers in China Resources Beer (Holdings) Company Limited's (HKG:291 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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China Resources Beer (Holdings) Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Xiaohai Hou, for HK$18m worth of shares, at about HK$28.04 per share. That means that an insider was selling shares at around the current price of HK$27.68. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Xiaohai Hou.

Xiaohai Hou ditched 938.00k shares over the year. The average price per share was CN¥27.84. 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!

View our latest analysis for China Resources Beer (Holdings)

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 Of China Resources Beer (Holdings)

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. From looking at our data, insiders own HK$13m worth of China Resources Beer (Holdings) stock, about 0.01% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About China Resources Beer (Holdings) Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at China Resources Beer (Holdings) in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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. While conducting our analysis, we found that China Resources Beer (Holdings) has 1 warning sign and it would be unwise to ignore this.

But note: China Resources Beer (Holdings) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.