Insiders Could Have Profited By Holding onto Xinji Shaxi Group Shares Despite 13% Drop

Despite the fact that Xinji Shaxi Group Co., Ltd's (HKG:3603) value has dropped 13% in the last week insiders who sold CN¥6.0m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of CN¥0.047 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Xinji Shaxi Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Lin Yi, for HK$6.0m worth of shares, at about HK$0.047 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.041. So it may not shed much light on insider confidence at current levels. Lin Yi was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Xinji Shaxi Group

I will like Xinji Shaxi 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 Xinji Shaxi Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Xinji Shaxi Group insiders own 38% of the company, worth about HK$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Xinji Shaxi Group Insider Transactions Indicate?

The fact that there have been no Xinji Shaxi Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Xinji Shaxi Group insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Xinji Shaxi Group has 3 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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 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.