Golden Solar New Energy Technology Holdings Limited's (HKG:1121) stock price has dropped 10% in the previous week, but insiders who sold CN¥23m in stock over the past year have had less luck. Given that the average selling price of CN¥3.85 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Golden Solar New Energy Technology Holdings

The insider, Tsz Chung Leung, made the biggest insider sale in the last 12 months. That single transaction was for HK$23m worth of shares at a price of HK$3.85 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$3.11). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tsz Chung Leung.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Golden Solar New Energy Technology Holdings 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. We usually like to see fairly high levels of insider ownership. It's great to see that Golden Solar New Energy Technology Holdings insiders own 39% of the company, worth about HK$2.2b. 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 Do The Golden Solar New Energy Technology Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Golden Solar New Energy Technology Holdings shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Golden Solar New Energy Technology Holdings insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Golden Solar New Energy Technology Holdings has 1 warning sign and it would be unwise to ignore it.

But note: Golden Solar New Energy Technology Holdings 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.