Chongqing Hongjiu Fruit Co., Limited (HKG:6689) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Chongqing Hongjiu Fruit
Chongqing Hongjiu Fruit Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior Deputy GM & Executive Director, He Peng, sold HK$2.6m worth of shares at a price of HK$5.27 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$4.59). So it may not tell us anything about how insiders feel about the current share price.
Chongqing Hongjiu Fruit insiders didn't buy any shares 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Chongqing Hongjiu Fruit Have Sold Stock Recently
The last quarter saw substantial insider selling of Chongqing Hongjiu Fruit shares. In total, insiders sold HK$8.3m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Chongqing Hongjiu Fruit
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. It's great to see that Chongqing Hongjiu Fruit insiders own 42% of the company, worth about HK$2.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Chongqing Hongjiu Fruit Insiders?
Insiders sold Chongqing Hongjiu Fruit shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Chongqing Hongjiu Fruit is growing earnings. 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 Chongqing Hongjiu Fruit. Case in point: We've spotted 3 warning signs for Chongqing Hongjiu Fruit you should be aware of, and 2 of them are significant.
Of course Chongqing Hongjiu Fruit 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 of direct interests only, but not derivative transactions or indirect interests.
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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.