Insiders Of Zhong Jia Guo Xin Holdings Retain HK$19m Of Investment Selling At Higher Prices

While Zhong Jia Guo Xin Holdings Company Limited (HKG:899) shareholders have had a good week with the stock up 14%, they shouldn't let their guards down. The fact that insiders chose to dispose of HK$19m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Zhong Jia Guo Xin Holdings

The insider Jia Yi Li made the biggest insider purchase in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$0.081 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.13. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

See our latest analysis for Zhong Jia Guo Xin Holdings

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Zhong Jia Guo Xin Holdings

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 appears that Zhong Jia Guo Xin Holdings insiders own 27% of the company, worth about HK$46m. 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 Do The Zhong Jia Guo Xin Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Zhong Jia Guo Xin Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhong Jia Guo Xin Holdings. When we did our research, we found 5 warning signs for Zhong Jia Guo Xin Holdings (2 shouldn't be ignored!) that we believe deserve your full attention.

Of course Zhong Jia Guo Xin Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.