How Many Yangtze Optical Fibre And Cable Joint Stock Limited Company (HKG:6869) Shares Have Insiders Sold, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Yangtze Optical Fibre And Cable Joint Stock Limited Company (HKG:6869).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Yangtze Optical Fibre And Cable Limited

Yangtze Optical Fibre And Cable Limited Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Frank Dorjee, for HK$1.7m worth of shares, at about HK$13.76 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$10.12). So it is hard to draw any strong conclusion from it. Frank Dorjee was the only individual insider to sell shares in the last twelve months.

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

I will like Yangtze Optical Fibre And Cable Limited 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 of Yangtze Optical Fibre And Cable Limited

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Yangtze Optical Fibre And Cable Limited insiders own about HK$67m worth of shares (which is 0.4% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Yangtze Optical Fibre And Cable Limited Tell Us?

The fact that there have been no Yangtze Optical Fibre And Cable Limited insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Yangtze Optical Fibre And Cable Limited insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yangtze Optical Fibre And Cable Limited. In terms of investment risks, we've identified 2 warning signs with Yangtze Optical Fibre And Cable Limited and understanding these should be part of your investment process.

But note: Yangtze Optical Fibre And Cable Limited 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, but not derivative transactions.

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