21% Of This JD Logistics Insider's Holdings Were Sold

Insiders were net sellers of JD Logistics, Inc.'s (HKG:2618 ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At JD Logistics

Over the last year, we can see that the biggest insider sale was by the Executive Director & CEO, Wei Hu, for HK$7.7m worth of shares, at about HK$10.68 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$12.54. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 21% of Wei Hu's holding. Wei Hu was the only individual insider to sell shares in the last twelve months.

Wei Hu sold a total of 806.59k shares over the year at an average price of CN¥10.90. 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!

Check out our latest analysis for JD Logistics

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Insider Ownership Of JD Logistics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. JD Logistics insiders own about HK$1.1b worth of shares (which is 1.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The JD Logistics Insider Transactions Indicate?

The fact that there have been no JD Logistics insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of JD Logistics, we can't say the same about the selling of shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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 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.