Selling Yunhong Guixin Group Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Despite the fact that Yunhong Guixin Group Holdings Limited's (HKG:8349) value has dropped 16% in the last week insiders who sold CN¥17m worth of stock in the past 12 months have had less success. The average selling price of CN¥1.32 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Yunhong Guixin Group Holdings

Yunhong Guixin Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Qixu Yan, for HK$17m worth of shares, at about HK$1.32 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.97). So it may not shed much light on insider confidence at current levels. Qixu Yan was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Yunhong Guixin Group Holdings insiders own 46% of the company, currently worth about HK$178m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Yunhong Guixin Group Holdings Tell Us?

It doesn't really mean much that no insider has traded Yunhong Guixin Group Holdings shares in the last quarter. While we feel good about high insider ownership of Yunhong Guixin Group Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yunhong Guixin Group Holdings. Every company has risks, and we've spotted 3 warning signs for Yunhong Guixin Group Holdings (of which 2 shouldn't be ignored!) you should know about.

But note: Yunhong Guixin Group Holdings 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.

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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.