For China Youran Dairy Group Insiders, Selling CN¥314m Of Shares Was A Smart Move
Despite a 14% gain in China Youran Dairy Group Limited's (HKG:9858) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell CN¥314m worth of stock in the last year, which could indicate some expected downturn.
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.
The Last 12 Months Of Insider Transactions At China Youran Dairy Group
Over the last year, we can see that the biggest insider sale was by the insider, Meirong Hao, for HK$314m worth of shares, at about HK$3.40 per share. That means that even when the share price was below the current price of HK$3.96, an insider wanted to cash in some shares. 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 only 16% of Meirong Hao's holding. Meirong Hao was the only individual insider to sell over the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does China Youran Dairy Group Boast High Insider Ownership?
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. It's great to see that China Youran Dairy Group insiders own 11% of the company, worth about HK$1.9b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The China Youran Dairy Group Insider Transactions Indicate?
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. Case in point: We've spotted 1 warning sign for China Youran Dairy Group you should be aware of.
But note: China Youran Dairy 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.