Anyone interested in China Anchu Energy Storage Group Limited (HKG:2399) should probably be aware that the Founder & Executive Chairman, Kin Sun Kwok, recently divested HK$2.0m worth of shares in the company, at an average price of HK$0.68 each. On the bright side, that sale was only 1.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for China Anchu Energy Storage Group

China Anchu Energy Storage Group Insider Transactions Over The Last Year

Notably, that recent sale by Founder & Executive Chairman Kin Sun Kwok was not the only time they sold China Anchu Energy Storage Group shares this year. Earlier in the year, they fetched HK$0.51 per share in a -HK$16m sale. That means that an insider was selling shares at slightly below the current price (HK$0.84). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 9.8% of Kin Sun Kwok's holding.

Happily, we note that in the last year insiders paid HK$45m for 86.62m shares. But they sold 166.22m shares for HK$89m. In total, China Anchu Energy Storage Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of China Anchu Energy Storage Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Anchu Energy Storage Group insiders own 49% of the company, currently worth about HK$919m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At China Anchu Energy Storage Group Tell Us?

An insider hasn't bought China Anchu Energy Storage Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. To that end, you should learn about the 3 warning signs we've spotted with China Anchu Energy Storage Group (including 2 which shouldn't be ignored).

Of course China Anchu Energy Storage 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.