Have Insiders Sold Chongqing Iron & Steel Company Limited (HKG:1053) Shares Recently?

We'd be surprised if Chongqing Iron & Steel Company Limited (HKG:1053) shareholders haven't noticed that an insider, Hung Sang Ng, recently sold HK$1.9m worth of stock at HK$1.30 per share. On the bright side, that sale was only 5.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Chongqing Iron & Steel

The Last 12 Months Of Insider Transactions At Chongqing Iron & Steel

In fact, the recent sale by insider Hung Sang Ng was not their only sale of Chongqing Iron & Steel shares this year. They previously made an even bigger sale of -HK$2.2m worth of shares at a price of HK$0.69 per share. That means that an insider was selling shares at slightly below the current price (HK$1.24). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.2% of Hung Sang Ng's holding.

Hung Sang Ng divested 4.70m shares over the last 12 months at an average price of CN¥0.88. 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!

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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. We usually like to see fairly high levels of insider ownership. Our data indicates that Chongqing Iron & Steel insiders own about HK$62m worth of shares (which is 0.4% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Chongqing Iron & Steel Tell Us?

An insider sold Chongqing Iron & Steel shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Chongqing Iron & Steel.

But note: Chongqing Iron & Steel 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, 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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