Anyone interested in China Oriented International Holdings Limited (HKG:1871) should probably be aware that a company insider, Wai Leung Ling, recently divested HK$2.6m worth of shares in the company, at an average price of HK$0.22 each. That sale was 23% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for China Oriented International Holdings

China Oriented International Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Wai Leung Ling was the biggest sale of China Oriented International Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of HK$0.22. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does China Oriented International Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Oriented International Holdings insiders own 65% of the company, currently worth about HK$56m based on the recent share price. 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 China Oriented International Holdings Insider Transactions Indicate?

An insider sold China Oriented International Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, China Oriented International Holdings has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: China Oriented International 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, but not derivative transactions.

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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.