Some Feiyang International Holdings Group Limited (HKG:1901) shareholders may be a little concerned to see that the Executive Chairman & CEO, Binfeng He, recently sold a substantial HK$6.8m worth of stock at a price of HK$0.74 per share. However, that sale only accounted for 2.7% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Feiyang International Holdings Group

Feiyang International Holdings Group Insider Transactions Over The Last Year

In fact, the recent sale by Binfeng He was the biggest sale of Feiyang International Holdings Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$0.76, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 2.7%of Binfeng He's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Feiyang International Holdings 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 Feiyang International Holdings Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Feiyang International Holdings Group insiders own 43% of the company, currently worth about HK$264m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Feiyang International Holdings Group Tell Us?

An insider hasn't bought Feiyang International Holdings Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Feiyang International Holdings Group has 5 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Feiyang International Holdings Group 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, 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.