Anyone interested in SANVO Fine Chemicals Group Limited (HKG:301) should probably be aware that the Chairman & CEO, Bingqiang Chen, recently divested HK$1.5m worth of shares in the company, at an average price of HK$1.17 each. However, the silver lining is that the sale only reduced their total holding by 0.4%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At SANVO Fine Chemicals Group

Notably, that recent sale by Bingqiang Chen is the biggest insider sale of SANVO Fine Chemicals Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of HK$1.18. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 0.4% of Bingqiang Chen's holding.

Bingqiang Chen divested 2.17m shares over the last 12 months at an average price of CN¥1.16. 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!

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Does SANVO Fine Chemicals Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SANVO Fine Chemicals Group insiders own 73% of the company, currently worth about HK$408m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About SANVO Fine Chemicals Group Insiders?

An insider hasn't bought SANVO Fine Chemicals Group 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, SANVO Fine Chemicals Group has 5 warning signs (and 1 which is concerning) we think you should know about.

But note: SANVO Fine Chemicals 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.