We wouldn't blame China Anchu Energy Storage Group Limited (HKG:2399) shareholders if they were a little worried about the fact that Kin Sun Kwok, the Founder & Executive Chairman recently netted about HK$10m selling shares at an average price of HK$0.57. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.5%.

View 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. They previously made an even bigger sale of -HK$16m worth of shares at a price of HK$0.51 per share. That means that even when the share price was below the current price of HK$0.57, an insider wanted to cash in some shares. 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.

In the last twelve months insiders purchased 110.02m shares for HK$57m. But they sold 145.02m shares for HK$76m. Over the last year we saw more insider selling of China Anchu Energy Storage Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does China Anchu Energy Storage Group Boast High Insider Ownership?

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 51% of the company, currently worth about HK$641m 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.

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

The stark truth for China Anchu Energy Storage Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Anchu Energy Storage Group. For example, China Anchu Energy Storage Group has 3 warning signs (and 2 which are significant) we think you should know about.

But note: China Anchu Energy Storage 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.