We wouldn't blame China Aoyuan Group Limited (HKG:3883) shareholders if they were a little worried about the fact that Jun Ma, the COO, Executive VP & Executive Director recently netted about CN¥11m selling shares at an average price of CN¥11.45. That's a big dump, and it decreased their holding size by 50%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At China Aoyuan Group
In fact, the recent sale by Jun Ma was the biggest sale of China Aoyuan Group shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$11.44. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Jun Ma divested 1500000 shares over the last 12 months at an average price of CN¥11.40. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does China Aoyuan Group Boast High 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. Our data indicates that China Aoyuan Group insiders own about HK$57m worth of shares (which is 0.2% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About China Aoyuan Group Insiders?
An insider sold China Aoyuan Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since China Aoyuan Group is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in China Aoyuan Group, you should check out this free report on analyst forecasts for the company.
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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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.