We wouldn't blame Shenzhen Pagoda Industrial (Group) Corporation Limited (HKG:2411) shareholders if they were a little worried about the fact that Yue Jiao, the Executive Deputy GM & Executive Director recently netted about HK$6.8m selling shares at an average price of HK$1.56. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Shenzhen Pagoda Industrial (Group)

In fact, the recent sale by Yue Jiao was the biggest sale of Shenzhen Pagoda Industrial (Group) shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$2.19). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 13% of Yue Jiao's holding.

Yue Jiao divested 17.51m shares over the last 12 months at an average price of CN¥2.24. 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 Shenzhen Pagoda Industrial (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 Shenzhen Pagoda Industrial (Group) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Shenzhen Pagoda Industrial (Group) insiders own about HK$934m worth of shares (which is 27% of the company). 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 Do The Shenzhen Pagoda Industrial (Group) Insider Transactions Indicate?

An insider sold Shenzhen Pagoda Industrial (Group) shares recently, but they didn't buy any. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Shenzhen Pagoda Industrial (Group) that deserve your attention before buying any shares.

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.