Some Feishang Anthracite Resources Limited (HKG:1738) shareholders may be a little concerned to see that insider Pak Hoo Kwan recently sold a whopping CN¥125m worth of stock at a price of CN¥1.00 per share. Probably the most concerning element of the whole transaction is that the dump amounted to 100% of their entire holding.
Feishang Anthracite Resources Insider Transactions Over The Last Year
Notably, that recent sale by Pak Hoo Kwan is the biggest insider sale of Feishang Anthracite Resources shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$1.00. 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.
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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Feishang Anthracite Resources insiders own about HK$952m worth of shares (which is 65% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Feishang Anthracite Resources Insider Transactions Indicate?
An insider sold Feishang Anthracite Resources shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. Along with insider transactions, I recommend checking if Feishang Anthracite Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Feishang Anthracite Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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