Insiders at CIMC Enric Holdings Limited (HKG:3899) sold CN¥6.1m worth of stock at an average price of CN¥11.50 a share over the past year, making the most of their investment. The company's market cap plunged by HK$974m after price dropped by 6.0% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for CIMC Enric Holdings

CIMC Enric Holdings Insider Transactions Over The Last Year

The Non-Executive Chairman, Xiang Gao, made the biggest insider sale in the last 12 months. That single transaction was for HK$3.4m worth of shares at a price of HK$11.30 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$7.55. So it may not tell us anything about how insiders feel about the current share price.

Insiders in CIMC Enric Holdings didn't buy any shares in 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!

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Insiders At CIMC Enric Holdings Have Sold Stock Recently

We have seen a bit of insider selling at CIMC Enric Holdings, over the last three months. Independent Non-Executive Director Xueqian Zhang only netted HK$90k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of CIMC Enric Holdings

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. Based on our data, CIMC Enric Holdings insiders have about 0.2% of the stock, worth approximately HK$29m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About CIMC Enric Holdings Insiders?

An insider hasn't bought CIMC Enric Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, CIMC Enric Holdings makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for CIMC Enric Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.