Zhengzhou Coal Mining Machinery Group Company Limited (SHSE:601717) Insiders Who Sold CN¥79m Worth of Stock Earlier This Year Are Probably Glad They Did so as Market Cap Slides to CN¥22b

Simply Wall St ·  Feb 17, 2023 11:35

Insiders seem to have made the most of their holdings by selling CN¥79m worth of Zhengzhou Coal Mining Machinery Group Company Limited (SHSE:601717) stock at an average sell price of CN¥15.99 during the past year. The company's market valuation decreased by CN¥1.3b after the stock price dropped 5.3% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Zhengzhou Coal Mining Machinery Group

The Last 12 Months Of Insider Transactions At Zhengzhou Coal Mining Machinery Group

Over the last year, we can see that the biggest insider sale was by the Executive Director & GM of Coal Mining Machinery Segment, Zugang Fu, for CN¥20m worth of shares, at about CN¥17.14 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CN¥13.07). So it may not tell us anything about how insiders feel about the current share price.

In the last year Zhengzhou Coal Mining Machinery Group insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SHSE:601717 Insider Trading Volume February 17th 2023

I will like Zhengzhou Coal Mining Machinery Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.1% of Zhengzhou Coal Mining Machinery Group shares, worth about CN¥237m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Zhengzhou Coal Mining Machinery Group Tell Us?

The fact that there have been no Zhengzhou Coal Mining Machinery Group insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Zhengzhou Coal Mining Machinery Group insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Zhengzhou Coal Mining Machinery Group and we suggest you have a look.

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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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.

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