Insiders Sold NIU Holdings At HK$0.23, Meanwhile Stock Sits Near HK$0.12

NIU Holdings Limited's (HKG:8619) stock price has dropped 13% in the previous week, but insiders who sold HK$963k in stock over the past year have had less luck. Given that the average selling price of HK$0.23 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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NIU Holdings Insider Transactions Over The Last Year

The insider, Vitaly Makarov, made the biggest insider sale in the last 12 months. That single transaction was for HK$669k worth of shares at a price of HK$0.21 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$0.12. 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 Vitaly Makarov. Notably Vitaly Makarov was also the biggest buyer, having purchased HK$400k worth of shares.

Vitaly Makarov sold a total of 4.18m shares over the year at an average price of HK$0.23. 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!

View our latest analysis for NIU Holdings

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Insiders At NIU Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at NIU Holdings. In total, insider Vitaly Makarov dumped HK$669k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does NIU Holdings 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. Our data indicates that NIU Holdings insiders own about HK$3.0m worth of shares (which is 6.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About NIU Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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 instance, we've identified 5 warning signs for NIU Holdings (4 are concerning) 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.