Shenzhen Pagoda Industrial (Group) Insiders Who Sold Avert HK$277m Market Cap Dip

Insiders seem to have made the most of their holdings by selling CN¥44m worth of Shenzhen Pagoda Industrial (Group) Corporation Limited (HKG:2411) stock at an average sell price of CN¥1.33 during the past year. The company's market valuation decreased by HK$277m after the stock price dropped 11% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Shenzhen Pagoda Industrial (Group) Insider Transactions Over The Last Year

The Non-Executive Director, Yue Jiao, made the biggest insider sale in the last 12 months. That single transaction was for HK$6.8m worth of shares at a price of HK$1.56 each. So what is clear is that an insider saw fit to sell at around the current price of HK$1.53. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Shenzhen Pagoda Industrial (Group) insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Shenzhen Pagoda Industrial (Group)

I will like Shenzhen Pagoda Industrial (Group) better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Shenzhen Pagoda Industrial (Group) Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shenzhen Pagoda Industrial (Group) insiders own about HK$602m worth of shares. That equates to 26% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Shenzhen Pagoda Industrial (Group) Tell Us?

It doesn't really mean much that no insider has traded Shenzhen Pagoda Industrial (Group) shares in the last quarter. While we feel good about high insider ownership of Shenzhen Pagoda Industrial (Group), we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Shenzhen Pagoda Industrial (Group).

Of course Shenzhen Pagoda Industrial (Group) 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.