Even though China Everbright Environment Group Limited (HKG:257) stock gained 3.3% last week, insiders who sold HK$1.3m worth of stock over the past year are probably better off. Selling at an average price of HK$5.49, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
While insider transactions are not the most important thing when it comes to long-term investing , we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for China Everbright Environment Group
The Last 12 Months Of Insider Transactions At China Everbright Environment Group
Over the last year, we can see that the biggest insider sale was by the VP & Executive Director, Yanguo Hu, for HK$1.3m worth of shares, at about HK$5.49 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$4.36. So it may not tell us anything about how insiders feel about the current share price. Yanguo Hu was the only individual insider to sell over the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!SEHK:257 Insider Trading Volume July 18th 2022
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that China Everbright Environment Group insiders own about HK$49m worth of shares (which is 0.2% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About China Everbright Environment Group Insiders?
It doesn't really mean much that no insider has traded China Everbright Environment Group shares in the last quarter. Still, the insider transactions at China Everbright Environment Group in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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 China Everbright Environment Group has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
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.