We wouldn't blame Huili Resources (Group) Limited (HKG:1303) shareholders if they were a little worried about the fact that Guangrong Li, a company insider, recently netted about HK$44m selling shares at an average price of HK$0.30. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

Check out our latest analysis for Huili Resources (Group)

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

In fact, the recent sale by Guangrong Li was the biggest sale of Huili Resources (Group) 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$0.30. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

All up, insiders sold more shares in Huili Resources (Group) than they bought, over the last year. 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 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?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Huili Resources (Group) shares, worth about HK$71m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

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

Insiders sold Huili Resources (Group) shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Huili Resources (Group) and understanding these should be part of your investment process.

But note: Huili Resources (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.