Some Zhengzhou Coal Mining Machinery Group Company Limited (SHSE:601717) shareholders may be a little concerned to see that the Executive Director & GM of Coal Mining Machinery Segment, Zugang Fu, recently sold a substantial CN¥20m worth of stock at a price of CN¥17.14 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

See our latest analysis for Zhengzhou Coal Mining Machinery Group

The Last 12 Months Of Insider Transactions At Zhengzhou Coal Mining Machinery Group

Notably, that recent sale by Zugang Fu is the biggest insider sale of Zhengzhou Coal Mining Machinery Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CN¥16.69. 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).

Insiders in Zhengzhou Coal Mining Machinery Group didn't buy any shares in 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.1% of Zhengzhou Coal Mining Machinery Group shares, worth about CN¥307m. 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 Does This Data Suggest About Zhengzhou Coal Mining Machinery Group Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Zhengzhou Coal Mining Machinery Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhengzhou Coal Mining Machinery Group. While conducting our analysis, we found that Zhengzhou Coal Mining Machinery Group has 3 warning signs and it would be unwise to ignore them.

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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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