We'd be surprised if ZJLD Group Inc (HKG:6979) shareholders haven't noticed that the Independent Non-Executive Director, Jisheng Yan, recently sold HK$2.2m worth of stock at HK$7.50 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

ZJLD Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Company Secretary & Executive Director, Kwong Chue Ng, for HK$95m worth of shares, at about HK$10.58 per share. 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$6.77. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in ZJLD Group 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like ZJLD Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does ZJLD Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. ZJLD Group insiders own 69% of the company, currently worth about HK$16b based on the recent share price. 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 Does This Data Suggest About ZJLD Group Insiders?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of ZJLD Group insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ZJLD Group. When we did our research, we found 4 warning signs for ZJLD Group (1 is potentially serious!) that we believe deserve your full attention.

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.