Insiders At China Dredging Environment Protection Holdings Sold CN¥12m Of Stock Potentially Indicating Weakness

Despite the fact that China Dredging Environment Protection Holdings Limited (HKG:871) stock rose 11% last week, insiders who sold CN¥12m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CN¥0.23, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At China Dredging Environment Protection Holdings

The insider, Xiangbing Yuan, made the biggest insider sale in the last 12 months. That single transaction was for HK$12m worth of shares at a price of HK$0.23 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 good news is that this large sale was at well above current price of HK$0.063. So it is hard to draw any strong conclusion from it. Xiangbing Yuan was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for China Dredging Environment Protection Holdings

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Insider Ownership Of China Dredging Environment Protection Holdings

Many investors like to check how much of a company is owned by 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's great to see that China Dredging Environment Protection Holdings insiders own 50% of the company, worth about HK$47m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At China Dredging Environment Protection Holdings Tell Us?

It doesn't really mean much that no insider has traded China Dredging Environment Protection Holdings shares in the last quarter. While we feel good about high insider ownership of China Dredging Environment Protection Holdings, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - China Dredging Environment Protection Holdings has 1 warning sign we think you should be aware of.

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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.