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This Insider Has Just Sold Shares In China U-Ton Holdings Limited (HKG:6168)

Simply Wall St

Investors may wish to note that the Founder & Chairman of China U-Ton Holdings Limited, Changqing Jiang, recently netted CN¥143k from selling stock, receiving an average price of CN¥0.29. On the bright side, that's just a small sale and only reduced their holding by 0.09%.

View our latest analysis for China U-Ton Holdings

China U-Ton Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Weihong Cheng for HK$32m worth of shares, at about HK$0.65 per share. That means that an insider was happy to buy shares at above the current price of HK$0.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid HK$37m for 56850000 shares. But they sold 62317000 for HK$20m. Overall, China U-Ton Holdings insiders were net buyers last year. 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!

SEHK:6168 Recent Insider Trading, October 27th 2019

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that China U-Ton Holdings insiders own 31% of the company, worth about HK$192m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About China U-Ton Holdings Insiders?

Unfortunately, there has been more insider selling of China U-Ton Holdings stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. Along with insider transactions, I recommend checking if China U-Ton Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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 editorial-team@simplywallst.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.