Independent Non-Executive Director Tze Ching Chan Sold A Bunch Of Shares In Mongolian Mining

We'd be surprised if Mongolian Mining Corporation (HKG:975) shareholders haven't noticed that the Independent Non-Executive Director, Tze Ching Chan, recently sold HK$1.7m worth of stock at HK$11.30 per share. Equally important, that sale actually reduced their holding by a full 60% which hardly makes us feel bullish about the stock.

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The Last 12 Months Of Insider Transactions At Mongolian Mining

In fact, the recent sale by Tze Ching Chan was the biggest sale of Mongolian Mining shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$9.90. So it may not shed much light on insider confidence at current levels.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Mongolian Mining

I will like Mongolian Mining 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.2% of Mongolian Mining shares, worth about HK$736m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Mongolian Mining Tell Us?

An insider hasn't bought Mongolian Mining stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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 Mongolian Mining. At Simply Wall St, we found 2 warning signs for Mongolian Mining that deserve your attention before buying any shares.

But note: Mongolian Mining 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.