We wouldn't blame Chaowei Power Holdings Limited (HKG:951) shareholders if they were a little worried about the fact that Mingming Zhou, the Chairman & CEO recently netted about HK$16m selling shares at an average price of HK$1.45. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.8%.

The Last 12 Months Of Insider Transactions At Chaowei Power Holdings

Notably, that recent sale by Mingming Zhou is the biggest insider sale of Chaowei Power Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of HK$1.45. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of Chaowei Power Holdings

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. It's great to see that Chaowei Power Holdings insiders own 45% of the company, worth about HK$717m. 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 Do The Chaowei Power Holdings Insider Transactions Indicate?

An insider hasn't bought Chaowei Power Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. To help with this, we've discovered 5 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Chaowei Power Holdings.

Of course Chaowei Power Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.