Selling China Environmental Technology Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Even though China Environmental Technology Holdings Limited (HKG:646) has fallen by 18% over the past week , insiders who sold HK$5.1m worth of stock over the past year have had less luck. Given that the average selling price of HK$0.81 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for China Environmental Technology Holdings

The Last 12 Months Of Insider Transactions At China Environmental Technology Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Takayuki Hoshino, sold HK$2.5m worth of shares at a price of HK$0.81 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.37. So it may not shed much light on insider confidence at current levels. Takayuki Hoshino was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 6.24m shares worth HK$5.1m. But they sold 6.24m shares for HK$5.1m. 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!

I will like China Environmental Technology Holdings 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Environmental Technology Holdings insiders own about HK$19m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About China Environmental Technology Holdings Insiders?

The fact that there have been no China Environmental Technology Holdings insider transactions recently certainly doesn't bother us. Our analysis of China Environmental Technology Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. When we did our research, we found 5 warning signs for China Environmental Technology Holdings (2 shouldn't be ignored!) that we believe deserve your full attention.

But note: China Environmental Technology Holdings 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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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.