Despite Hitting HK$0.53, China Changbaishan International Holdings Insiders Still Sold Too Soon

China Changbaishan International Holdings Limited's (HKG:989) value has fallen 16% in the last week, but insiders who sold CN¥1.3m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of CN¥1.15 is still lower than the current share price.

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 Changbaishan International Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Xintong Cui, sold HK$1.2m worth of shares at a price of HK$1.21 per share. 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$0.53. So it is hard to draw any strong conclusion from it. Xintong Cui was the only individual insider to sell shares in the last twelve months.

Xintong Cui sold a total of 1.10m shares over the year at an average price of CN¥1.15. 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!

See our latest analysis for China Changbaishan International Holdings

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Insider Ownership Of China Changbaishan International 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. China Changbaishan International Holdings insiders own 43% of the company, currently worth about HK$82m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The China Changbaishan International Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded China Changbaishan International Holdings shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the China Changbaishan International Holdings insiders selling. 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 China Changbaishan International Holdings has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: China Changbaishan International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.