Zhixin Group Holding Executive Director Dan Ye Sells 99% Of Holding

Some Zhixin Group Holding Limited (HKG:2187) shareholders may be a little concerned to see that the Executive Director, Dan Ye, recently sold a substantial HK$5.4m worth of stock at a price of HK$0.94 per share. That diminished their holding by a very significant 99%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Zhixin Group Holding

The Last 12 Months Of Insider Transactions At Zhixin Group Holding

In fact, the recent sale by Executive Director Dan Ye was not their only trade of Zhixin Group Holding shares this year. They previously purchased HK$105m worth of shares at a price of HK$3.20 per share. That means that even when the share price was higher than HK$0.90 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Dan Ye was the only individual insider to buy during the last year.

Over the last year we saw more insider selling of Zhixin Group Holding shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Of Zhixin Group Holding

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. Zhixin Group Holding insiders own 61% of the company, currently worth about HK$408m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Zhixin Group Holding Tell Us?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Zhixin Group Holding is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhixin Group Holding. At Simply Wall St, we've found that Zhixin Group Holding has 4 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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.