Insiders seem to have made the most of their holdings by selling CN¥111m worth of Star Shine Holdings Group Limited (HKG:1440) stock at an average sell price of CN¥0.90 during the past year. The company's market valuation decreased by HK$605m after the stock price dropped 14% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Star Shine Holdings Group Insider Transactions Over The Last Year

The Executive Chairman, Wing Sing Tsoi, made the biggest insider sale in the last 12 months. That single transaction was for HK$45m worth of shares at a price of HK$0.90 each. That means that even when the share price was below the current price of HK$3.05, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.4% of Wing Sing Tsoi's holding. The only individual insider seller over the last year was Wing Sing Tsoi.

Wing Sing Tsoi sold a total of 123.00m shares over the year at an average price of CN¥0.90. 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.

Does Star Shine Holdings 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. We usually like to see fairly high levels of insider ownership. Star Shine Holdings Group insiders own about HK$2.1b worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Star Shine Holdings Group Insider Transactions Indicate?

The fact that there have been no Star Shine Holdings Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Star Shine Holdings Group, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Star Shine Holdings Group has 1 warning sign and it would be unwise to ignore this.

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 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.