Shanghai Realway Capital Assets Management Drops To HK$0.91, Yet Insiders May Have Sold Too Early

Shanghai Realway Capital Assets Management Co., Ltd.'s (HKG:1835) stock price has dropped 27% in the previous week, but insiders who sold CN¥694k in stock over the past year have had less luck. Given that the average selling price of CN¥1.20 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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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Shanghai Realway Capital Assets Management Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Lei Fan, sold HK$694k worth of shares at a price of HK$1.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.91). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Lei Fan.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Shanghai Realway Capital Assets Management

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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's great to see that Shanghai Realway Capital Assets Management insiders own 82% of the company, worth about HK$114m. 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 Shanghai Realway Capital Assets Management Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Shanghai Realway Capital Assets Management, 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. Be aware that Shanghai Realway Capital Assets Management is showing 3 warning signs in our investment analysis, and 1 of those is concerning...

Of course Shanghai Realway Capital Assets Management 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.