We'd be surprised if China Environmental Resources Group Limited (HKG:1130) shareholders haven't noticed that an insider, Xiaowu Li, recently sold HK$948k worth of stock at HK$0.079 per share. That sale was 10% of their holding, so it does make us raise an eyebrow.
China Environmental Resources Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Chi Hang Yeung bought HK$2.8m worth of shares at a price of HK$0.16 per share. That means that even when the share price was higher than HK$0.078 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Chi Hang Yeung.
Chi Hang Yeung bought a total of 80748000 shares over the year at an average price of HK$0.15. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does China Environmental Resources Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of China Environmental Resources Group shares, worth about HK$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The China Environmental Resources Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
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