This Insider Has Just Sold Shares In New Gonow Recreational Vehicles
We wouldn't blame New Gonow Recreational Vehicles Inc. (HKG:805) shareholders if they were a little worried about the fact that Xuezhong Miao, the Chairman & CEO recently netted about HK$7.3m selling shares at an average price of HK$1.11. However, that sale only accounted for 0.9% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At New Gonow Recreational Vehicles
Notably, that recent sale by Xuezhong Miao is the biggest insider sale of New Gonow Recreational Vehicles shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$1.09. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
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!
See our latest analysis for New Gonow Recreational Vehicles
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. New Gonow Recreational Vehicles insiders own about HK$771m worth of shares (which is 74% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At New Gonow Recreational Vehicles Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that New Gonow Recreational Vehicles has 3 warning signs and it would be unwise to ignore these.
Of course New Gonow Recreational Vehicles 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.