Selling CN¥8.5m worth of stock earlier this year was a lucrative decision for Xinjiang Xinxin Mining Industry Co., Ltd. (HKG:3833) insiders

By
Simply Wall St
Published
January 12, 2022
SEHK:3833
Source: Shutterstock

Xinjiang Xinxin Mining Industry Co., Ltd.'s (HKG:3833) stock rose 22% last week, but insiders who sold CN¥8.5m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of CN¥1.70, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Xinjiang Xinxin Mining Industry

Xinjiang Xinxin Mining Industry Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Vice Chairman of the Board, Chuanyou Zhou, sold HK$6.3m worth of shares at a price of HK$1.69 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$1.35). So it may not shed much light on insider confidence at current levels. Chuanyou Zhou was the only individual insider to sell over the last year.

Chuanyou Zhou divested 5.00m shares over the last 12 months at an average price of CN¥1.70. 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!

insider-trading-volume
SEHK:3833 Insider Trading Volume January 12th 2022

I will like Xinjiang Xinxin Mining Industry better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. It appears that Xinjiang Xinxin Mining Industry insiders own 13% of the company, worth about HK$382m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Xinjiang Xinxin Mining Industry Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Xinjiang Xinxin Mining Industry insiders selling. Along with insider transactions, I recommend checking if Xinjiang Xinxin Mining Industry is growing revenue. This free chart of historic revenue and earnings should make that easy.

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, but not derivative transactions.

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