Some Zhengzhou Coal Mining Machinery Group Company Limited (SHSE:601717) shareholders may be a little concerned to see that the Executive Chairman, Chengyao Jiao, recently sold a substantial CN¥7.6m worth of stock at a price of CN¥15.26 per share. However, that sale only accounted for 9.1% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Zhengzhou Coal Mining Machinery Group

Zhengzhou Coal Mining Machinery Group Insider Transactions Over The Last Year

Notably, that recent sale by Chengyao Jiao is the biggest insider sale of Zhengzhou Coal Mining Machinery Group shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of CN¥14.85. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Zhengzhou Coal Mining Machinery Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.2% of Zhengzhou Coal Mining Machinery Group shares, worth about CN¥304m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Zhengzhou Coal Mining Machinery Group Tell Us?

Insiders sold Zhengzhou Coal Mining Machinery Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Zhengzhou Coal Mining Machinery Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. You'd be interested to know, that we found 3 warning signs for Zhengzhou Coal Mining Machinery Group and we suggest you have a look.

But note: Zhengzhou Coal Mining Machinery 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, 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.