Over the past year, insiders sold CN¥457m worth of Golden Solar New Energy Technology Holdings Limited (HKG:1121) stock at an average price of CN¥10.00 per share allowing them to get the most out of their money. After the stock price dropped 4.4% last week, the company's market value declined by HK$651m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Golden Solar New Energy Technology Holdings

Golden Solar New Energy Technology Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Chaohui Zhuang, for HK$456m worth of shares, at about HK$10.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$8.29. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Golden Solar New Energy Technology Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Golden Solar New Energy Technology Holdings 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 Golden Solar New Energy Technology Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Golden Solar New Energy Technology Holdings insiders own about HK$7.3b worth of shares (which is 52% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Golden Solar New Energy Technology Holdings Insiders?

It doesn't really mean much that no insider has traded Golden Solar New Energy Technology Holdings shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Golden Solar New Energy Technology Holdings insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Golden Solar New Energy Technology Holdings.

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.