16% Of This China Youran Dairy Group Insider's Holdings Were Sold

From what we can see, insiders were net sellers in China Youran Dairy Group Limited's (HKG:9858 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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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China Youran Dairy Group Insider Transactions Over The Last Year

The insider, Meirong Hao, made the biggest insider sale in the last 12 months. That single transaction was for HK$314m worth of shares at a price of HK$3.40 each. That means that an insider was selling shares at slightly below the current price (HK$4.30). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 16% of Meirong Hao's stake. The only individual insider seller over the last year was Meirong Hao.

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!

Check out our latest analysis for China Youran Dairy 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).

Insider Ownership Of China Youran Dairy Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Youran Dairy Group insiders own about HK$2.0b worth of shares (which is 12% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About China Youran Dairy Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. 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 Youran Dairy Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Youran Dairy Group. For example - China Youran Dairy Group has 1 warning sign we think you should be aware of.

Of course China Youran Dairy Group 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.