We note that the China Anchu Energy Storage Group Limited (HKG:2399) Founder & Executive Chairman, Kin Sun Kwok, recently sold HK$718k worth of stock for HK$0.55 per share. On the bright side, that's just a small sale and only reduced their holding by 0.5%.
Check out our latest analysis for China Anchu Energy Storage Group
The Last 12 Months Of Insider Transactions At China Anchu Energy Storage Group
In fact, the recent sale by Founder & Executive Chairman Kin Sun Kwok was not their only sale of 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$0.58). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.8%of Kin Sun Kwok's holding.
Happily, we note that in the last year insiders paid HK$57m for 110.02m shares. On the other hand they divested 123.72m shares, for HK$64m. Over the last year we saw more insider selling of China Anchu Energy Storage Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. China Anchu Energy Storage Group insiders own about HK$664m worth of shares (which is 52% 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 Does This Data Suggest About China Anchu Energy Storage Group Insiders?
Unfortunately, there has been more insider selling of China Anchu Energy Storage Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. 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. Every company has risks, and we've spotted 3 warning signs for China Anchu Energy Storage Group (of which 2 don't sit too well with us!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.