We wouldn't blame Huili Resources (Group) Limited (HKG:1303) shareholders if they were a little worried about the fact that Jianzhong Guo, a company insider, recently netted about HK$9.9m selling shares at an average price of HK$0.35. Probably the most concerning element of the whole transaction is that the disposal amounted to 67% of their entire holding.

View our latest analysis for Huili Resources (Group)

The Last 12 Months Of Insider Transactions At Huili Resources (Group)

Notably, that recent sale by Jianzhong Guo is the biggest insider sale of Huili Resources (Group) shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.36). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 67% of Jianzhong Guo's holding.

Over the last year we saw more insider selling of Huili Resources (Group) shares, than buying. 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!

I will like Huili Resources (Group) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Huili Resources (Group) Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Huili Resources (Group) insiders own about HK$96m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Huili Resources (Group) Insider Transactions Indicate?

An insider sold Huili Resources (Group) shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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 Huili Resources (Group) has 3 warning signs and it would be unwise to ignore them.

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, 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.