Viewing insider transactions for Nongfu Spring Co., Ltd.'s (HKG:9633 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Nongfu Spring
The Last 12 Months Of Insider Transactions At Nongfu Spring
The insider, Lian Xue, made the biggest insider sale in the last 12 months. That single transaction was for HK$64m worth of shares at a price of HK$45.39 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$41.20. So it may not tell us anything about how insiders feel about the current share price. Lian Xue was the only individual insider to sell over the last year.
Lian Xue divested 1.50m shares over the last 12 months at an average price of CN¥45.41. 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!
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Nongfu Spring Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Nongfu Spring. In total, insider Lian Xue sold HK$68m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Nongfu Spring Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Nongfu Spring insiders own about HK$390b worth of shares (which is 84% 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 Do The Nongfu Spring Insider Transactions Indicate?
An insider hasn't bought Nongfu Spring stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Nongfu Spring is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Nongfu Spring has 1 warning sign we think you should be aware of.
Of course Nongfu Spring 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.