Jie Li Is The Chief Financial Officer of China Automotive Systems, Inc. (NASDAQ:CAAS) And They Just Sold 35% Of Their Shares

Anyone interested in China Automotive Systems, Inc. (NASDAQ:CAAS) should probably be aware that the Chief Financial Officer, Jie Li, recently divested US$452k worth of shares in the company, at an average price of US$9.03 each. That sale was 35% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for China Automotive Systems

The Last 12 Months Of Insider Transactions At China Automotive Systems

Notably, that recent sale by Jie Li is the biggest insider sale of China Automotive Systems shares that we've seen in the last year. 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 US$6.89. So it is hard to draw any strong conclusion from it.

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).

Does China Automotive Systems Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Automotive Systems insiders own 54% of the company, worth about US$115m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The China Automotive Systems Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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 China Automotive Systems. In terms of investment risks, we've identified 2 warning signs with China Automotive Systems and understanding them should be part of your investment process.

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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