VP, Secretary of the Board & Executive Director Ligang Wang Sold A Bunch Of Shares In Zhaojin Mining Industry

Some Zhaojin Mining Industry Company Limited (HKG:1818) shareholders may be a little concerned to see that the VP, Secretary of the Board & Executive Director, Ligang Wang, recently sold a substantial HK$7.2m worth of stock at a price of HK$14.45 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Zhaojin Mining Industry

Zhaojin Mining Industry Insider Transactions Over The Last Year

In fact, the recent sale by Ligang Wang was the biggest sale of Zhaojin Mining Industry shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$15.72, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Ligang Wang's holding.

Zhaojin Mining Industry insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Zhaojin Mining Industry 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 Zhaojin Mining Industry

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own HK$12m worth of Zhaojin Mining Industry stock, about 0.02% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Zhaojin Mining Industry Insiders?

Insiders sold Zhaojin Mining Industry shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Zhaojin Mining Industry is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of 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. Be aware that Zhaojin Mining Industry is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

Of course Zhaojin Mining Industry 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 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.

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