Insider Sales At Jingrui Holdings Landed A Good Price
Despite a 13% gain in Jingrui Holdings Limited's (HKG:1862) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell CN¥1.2m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
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.
Jingrui Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Yuncong Zhan, sold HK$1.2m worth of shares at a price of HK$0.012 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.017. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Yuncong Zhan's holding. The only individual insider seller over the last year was Yuncong Zhan. Notably Yuncong Zhan was also the biggest buyer, having purchased HK$297k worth of shares.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Jingrui Holdings
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
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Jingrui Holdings insiders own 69% of the company, worth about HK$18m. 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 Jingrui Holdings Tell Us?
The fact that there have been no Jingrui Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Jingrui Holdings, 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 Jingrui Holdings. While conducting our analysis, we found that Jingrui Holdings has 4 warning signs and it would be unwise to ignore them.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.