Xinyang Maojian Group Limited (HKG:362) insiders made a handsome profit after selling stock presently valued at HK$0.12 apiece for HK$0.12

By
Simply Wall St
Published
January 10, 2022
SEHK:362
Source: Shutterstock

Even though Xinyang Maojian Group Limited (HKG:362) stock gained 14% last week, insiders who sold HK$172k worth of stock over the past year are probably better off. Selling at an average price of HK$0.12, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Xinyang Maojian Group

The Last 12 Months Of Insider Transactions At Xinyang Maojian Group

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Tze Ping Law ditched 1.40m shares over the year. The average price per share was HK$0.12. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:362 Insider Trading Volume January 10th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Xinyang Maojian Group Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Xinyang Maojian Group. Executive Director Tze Ping Law divested only HK$172k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

Insider Ownership of Xinyang Maojian Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 22% of Xinyang Maojian Group shares, worth about HK$72m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Xinyang Maojian Group Insiders?

An insider sold Xinyang Maojian Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 5 warning signs for Xinyang Maojian Group (of which 3 make us uncomfortable!) you should know about.

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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