We note that the China Supply Chain Holdings Limited (HKG:3708) Executive Director, Aizhong Lai, recently sold HK$647k worth of stock for HK$0.13 per share. While that isn't a lot of money, it was a substantial 96% of their holding, so certainly isn't a good sign.
Check out our latest analysis for China Supply Chain Holdings
China Supply Chain Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Aizhong Lai was the biggest sale of China Supply Chain Holdings shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.10. So it is hard to draw any strong conclusion from it.
Aizhong Lai divested 5.12m shares over the last 12 months at an average price of HK$0.13. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like China Supply Chain 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.
Insider Ownership
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. China Supply Chain Holdings insiders own 59% of the company, currently worth about HK$329m based on the recent share price. 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 China Supply Chain Holdings Insiders?
An insider sold China Supply Chain Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that China Supply Chain Holdings has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course China Supply Chain Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.