Selling Xiangxing International Holding Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Even though Xiangxing International Holding Limited (HKG:1732) has fallen by 17% over the past week , insiders who sold CN¥4.7m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CN¥0.47 is still lower than the current share price.

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.

View our latest analysis for Xiangxing International Holding

The Last 12 Months Of Insider Transactions At Xiangxing International Holding

In the last twelve months, the biggest single sale by an insider was when the Independent Non-Executive Director, Kee Cheung Ho, sold HK$1.9m worth of shares at a price of HK$0.48 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$0.24). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Kee Cheung Ho.

Kee Cheung Ho sold a total of 9.98m shares over the year at an average price of CN¥0.47. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Xiangxing International Holding Insiders Are Selling The Stock

The last three months saw significant insider selling at Xiangxing International Holding. In total, Independent Non-Executive Director Kee Cheung Ho sold HK$3.0m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Xiangxing International Holding

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Xiangxing International Holding insiders own 47% of the company, worth about HK$136m. 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 Xiangxing International Holding Tell Us?

An insider hasn't bought Xiangxing International Holding 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. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xiangxing International Holding. To help with this, we've discovered 6 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Xiangxing International Holding.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.