We wouldn't blame China Aluminum Cans Holdings Limited (HKG:6898) shareholders if they were a little worried about the fact that Wan Tsang Lin, the Executive Chairman & GM recently netted about HK$16m selling shares at an average price of HK$0.40. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.1%.
See our latest analysis for China Aluminum Cans Holdings
The Last 12 Months Of Insider Transactions At China Aluminum Cans Holdings
In fact, the recent sale by Wan Tsang Lin was the biggest sale of China Aluminum Cans Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$0.56, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 6.1%of Wan Tsang Lin's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does China Aluminum Cans Holdings Boast High Insider Ownership?
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. China Aluminum Cans Holdings insiders own about HK$370m worth of shares (which is 69% of the company). 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 Do The China Aluminum Cans Holdings Insider Transactions Indicate?
An insider hasn't bought China Aluminum Cans Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, China Aluminum Cans Holdings makes money, and is growing profits. 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 China Aluminum Cans Holdings. Be aware that China Aluminum Cans Holdings is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
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 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.