We'd be surprised if Xiangxing International Holding Limited (HKG:1732) shareholders haven't noticed that the Independent Non-Executive Director, Kee Cheung Ho, recently sold HK$1.3m worth of stock at HK$0.43 per share. The eyebrow raising move amounted to a reduction of 33% in their holding.

See our latest analysis for Xiangxing International Holding

The Last 12 Months Of Insider Transactions At Xiangxing International Holding

Notably, that recent sale by Kee Cheung Ho is the biggest insider sale of Xiangxing International Holding shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.47). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 33% of Kee Cheung Ho's holding.

Kee Cheung Ho divested 4.00m shares over the last 12 months at an average price of CN¥0.42. 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 Xiangxing International Holding better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Xiangxing International Holding

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. It's great to see that Xiangxing International Holding insiders own 48% of the company, worth about HK$266m. 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 Xiangxing International Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xiangxing International Holding. At Simply Wall St, we've found that Xiangxing International Holding has 6 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

But note: Xiangxing International Holding 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.