We'd be surprised if Autostreets Development Limited (HKG:2443) shareholders haven't noticed that the Chief Executive Officer, Hongliang Zhao, recently sold HK$2.7m worth of stock at HK$8.69 per share. However, the silver lining is that the sale only reduced their total holding by 3.9%, so we're hesitant to read anything much into it, on its own.
Autostreets Development Insider Transactions Over The Last Year
In fact, the recent sale by Hongliang Zhao was the biggest sale of Autostreets Development shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$7.31. So it is hard to draw any strong conclusion from it.
You can see a visual depiction of insider transactions (by companies and 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!
I will like Autostreets Development better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Autostreets Development 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. Autostreets Development insiders own about HK$1.5b worth of shares (which is 24% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Autostreets Development Insider Transactions Indicate?
An insider hasn't bought Autostreets Development stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Autostreets Development. To help with this, we've discovered 3 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Autostreets Development.
Of course Autostreets Development may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
