Over the past year, insiders sold CN¥341m worth of Sihuan Pharmaceutical Holdings Group Ltd. (HKG:460) stock at an average price of CN¥1.07 per share allowing them to get the most out of their money. The company's market cap plunged by HK$1.7b after price dropped by 16% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Sihuan Pharmaceutical Holdings Group

Sihuan Pharmaceutical Holdings Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Deputy General Manager, Xianhui Meng, for HK$341m worth of shares, at about HK$1.07 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.93). So it is hard to draw any strong conclusion from it. Xianhui Meng was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sihuan Pharmaceutical Holdings Group insiders own about HK$658m worth of shares. That equates to 7.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sihuan Pharmaceutical Holdings Group Insider Transactions Indicate?

The fact that there have been no Sihuan Pharmaceutical Holdings Group insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Sihuan Pharmaceutical Holdings Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sihuan Pharmaceutical Holdings Group. Every company has risks, and we've spotted 2 warning signs for Sihuan Pharmaceutical Holdings Group you should know about.

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.