Anyone interested in Shenzhen Pagoda Industrial (Group) Corporation Limited (HKG:2411) should probably be aware that the Executive Deputy GM & Executive Director, Yue Jiao, recently divested HK$3.8m worth of shares in the company, at an average price of HK$1.26 each. That sale was 11% of their holding, so it does make us raise an eyebrow.

Shenzhen Pagoda Industrial (Group) Insider Transactions Over The Last Year

Notably, that recent sale by Executive Deputy GM & Executive Director Yue Jiao was not the only time they sold Shenzhen Pagoda Industrial (Group) shares this year. They previously made an even bigger sale of -HK$6.8m worth of shares at a price of HK$1.56 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$1.19. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Shenzhen Pagoda Industrial (Group) shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Shenzhen Pagoda Industrial (Group) 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.

Insider Ownership Of Shenzhen Pagoda Industrial (Group)

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shenzhen Pagoda Industrial (Group) insiders own about HK$495m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Shenzhen Pagoda Industrial (Group) Insiders?

Insiders sold Shenzhen Pagoda Industrial (Group) shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 3 warning signs for Shenzhen Pagoda Industrial (Group) and we suggest you have a look.

Of course Shenzhen Pagoda Industrial (Group) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.