Don't Ignore The Insider Selling In Tongdao Liepin Group

Anyone interested in Tongdao Liepin Group (HKG:6100) should probably be aware that the Executive Director & CTO, Xingmao Chen, recently divested HK$800k worth of shares in the company, at an average price of HK$8.18 each. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Tongdao Liepin Group

The Last 12 Months Of Insider Transactions At Tongdao Liepin Group

The Chairman of the Board & CEO, Kebin Dai, made the biggest insider sale in the last 12 months. That single transaction was for HK$7.0m worth of shares at a price of HK$13.91 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$8.20. So it may not tell us anything about how insiders feel about the current share price. Notably Kebin Dai was also the biggest buyer, having purchased HK$6.5m worth of shares.

Over the last year we saw more insider selling of Tongdao Liepin Group shares, than buying. 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!

I will like Tongdao Liepin Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Tongdao Liepin Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Tongdao Liepin Group insiders own about HK$1.1b worth of shares (which is 27% of the company). 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 Tongdao Liepin Group Tell Us?

An insider hasn't bought Tongdao Liepin Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Tongdao Liepin Group and we suggest you have a look.

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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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.