Xiangxing International Holding Insider Lowered Holding By 31% During Last Year

Viewing insider transactions for Xiangxing International Holding Limited's (HKG:1732 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Xiangxing International Holding

Over the last year, we can see that the biggest insider sale was by the Executive Chairman & Founder, Youguo Cheng, for HK$37m worth of shares, at about HK$0.21 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.22. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 31% of Youguo Cheng's stake. The only individual insider seller over the last year was Youguo Cheng.

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!

View our latest analysis for Xiangxing International Holding

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Insider Ownership Of Xiangxing International Holding

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Xiangxing International Holding insiders own about HK$88m worth of shares. That equates to 31% of the company. 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 Xiangxing International Holding Insider Transactions Indicate?

The fact that there have been no Xiangxing International Holding insider transactions recently certainly doesn't bother us. Still, the insider transactions at Xiangxing International Holding in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Xiangxing International Holding (1 is significant) 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.