Insider Sellers Might Regret Selling Ziyuanyuan Holdings Group Shares at a Lower Price Than Current Market Value

Even though Ziyuanyuan Holdings Group Limited (HKG:8223) has fallen by 10% over the past week , insiders who sold CN¥14m worth of stock over the past year have had less luck. The average selling price of CN¥0.97 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Ziyuanyuan Holdings Group

Over the last year, we can see that the biggest insider sale was by the Executive Director, Zhiwei Tian, for HK$6.5m worth of shares, at about HK$1.30 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.15. So it may not tell us anything about how insiders feel about the current share price. Zhiwei Tian was the only individual insider to sell shares in the last twelve months.

Zhiwei Tian ditched 14.48m shares over the year. The average price per share was CN¥0.97. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Ziyuanyuan Holdings Group

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Ziyuanyuan Holdings Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ziyuanyuan Holdings Group insiders own 53% of the company, currently worth about HK$41m 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 Ziyuanyuan Holdings Group Insider Transactions Indicate?

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 Ziyuanyuan Holdings Group, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ziyuanyuan Holdings Group. To that end, you should learn about the 4 warning signs we've spotted with Ziyuanyuan Holdings Group (including 3 which can't be ignored).

But note: Ziyuanyuan Holdings Group 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.