100% Of This West China Cement Insider's Holdings Were Sold

Insiders were net sellers of West China Cement Limited's (HKG:2233 ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for West China Cement

The Last 12 Months Of Insider Transactions At West China Cement

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Jianshun Cao, sold HK$1.3m worth of shares at a price of HK$1.09 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$1.73. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 100% of Jianshun Cao's stake. The only individual insider seller over the last year was Jianshun Cao.

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!

I will like West China Cement 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that West China Cement insiders own about HK$4.8m worth of shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At West China Cement Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at West China Cement are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for West China Cement you should know about.

But note: West China Cement 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.