This Enviro Energy International Holdings Insider Reduced Their Stake By 100%

Looking at Enviro Energy International Holdings Limited's (HKG:1102 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Enviro Energy International Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Lihui Pan, sold HK$11m worth of shares at a price of HK$0.05 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.052. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Lihui Pan's holding. Lihui Pan was the only individual insider to sell over the last year. Notably Lihui Pan was also the biggest buyer, having purchased HK$1.3m worth of shares.

Lihui Pan divested 228.27m shares over the last 12 months at an average price of HK$0.05. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Enviro Energy International Holdings

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Insider Ownership Of Enviro Energy International 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own HK$1.5m worth of Enviro Energy International Holdings stock, about 2.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Enviro Energy International Holdings Insiders?

The fact that there have been no Enviro Energy International Holdings insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Enviro Energy International Holdings insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. At Simply Wall St, we found 2 warning signs for Enviro Energy International Holdings that deserve your attention before buying any shares.

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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.