Over the past year, insiders sold CN¥1.8m worth of Central China Securities Co., Ltd. (HKG:1375) stock at an average price of CN¥1.38 per share allowing them to get the most out of their money. The company's market worth decreased by HK$464m over the past week after the stock price dropped 8.9%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Central China Securities

The Last 12 Months Of Insider Transactions At Central China Securities

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board, Mingjun Jian, for HK$1.1m worth of shares, at about HK$1.40 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.03. So it is hard to draw any strong conclusion from it. Mingjun Jian was the only individual insider to sell over the last year.

Mingjun Jian divested 1.29m shares over the last 12 months at an average price of CN¥1.38. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Central China Securities better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Central China Securities insiders own about HK$157m worth of shares. That equates to 1.1% 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.

What Might The Insider Transactions At Central China Securities Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Central China Securities, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Central China Securities. At Simply Wall St, we've found that Central China Securities has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Central China Securities may not be the best stock to buy. So you may wish to see this free collection of high quality 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.