Insiders were net sellers of Nongfu Spring Co., Ltd.'s (HKG:9633 ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Nongfu Spring Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-executive Director, Lian Xue, for HK$64m worth of shares, at about HK$45.39 per share. That means that an insider was selling shares at around the current price of HK$44.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Lian Xue was the only individual insider to sell over the last year.

Lian Xue divested 1.50m shares over the last 12 months at an average price of CN¥45.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Nongfu Spring

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Nongfu Spring insiders own 84% of the company, worth about HK$423b. 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 Nongfu Spring Insider Transactions Indicate?

The fact that there have been no Nongfu Spring insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Nongfu Spring, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Nongfu Spring, you should check out this free report on analyst forecasts for the company.

Of course Nongfu Spring 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.