Feiyang International Holdings Group Drops To HK$0.072, Yet Insiders May Have Sold Too Early

Despite the fact that Feiyang International Holdings Group Limited's (HKG:1901) value has dropped 10.0% in the last week insiders who sold CN¥3.3m worth of stock in the past 12 months have had less success. The average selling price of CN¥0.21 is still lower than the current share price, or in other words, insiders would have been better off holding on to 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.

See our latest analysis for Feiyang International Holdings Group

Feiyang International Holdings Group Insider Transactions Over The Last Year

The Non-Executive Director, Yang Shen, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.3m worth of shares at a price of HK$0.22 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.072). So it is hard to draw any strong conclusion from it. Yang Shen was the only individual insider to sell over the last year.

Yang Shen divested 16.05m shares over the last 12 months at an average price of CN¥0.21. 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!

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Insider Ownership

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. We usually like to see fairly high levels of insider ownership. It's great to see that Feiyang International Holdings Group insiders own 40% of the company, worth about HK$24m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Feiyang International Holdings Group Tell Us?

The fact that there have been no Feiyang International Holdings Group insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Feiyang International Holdings Group insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Feiyang International Holdings Group. While conducting our analysis, we found that Feiyang International Holdings Group has 2 warning signs and it would be unwise to ignore these.

But note: Feiyang International Holdings Group 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 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.