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Have Insiders Been Selling China Display Optoelectronics Technology Holdings Limited (HKG:334) Shares?

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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell China Display Optoelectronics Technology Holdings Limited (HKG:334), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

See our latest analysis for China Display Optoelectronics Technology Holdings

China Display Optoelectronics Technology Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the , Ko Yuen Lau, for HK$108m worth of shares, at about HK$0.85 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.59. So it is hard to draw any strong conclusion from it. Ko Yuen Lau was the only individual insider to sell over the last year.

The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:334 Recent Insider Trading, June 12th 2019
SEHK:334 Recent Insider Trading, June 12th 2019

I will like China Display Optoelectronics Technology Holdings 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 of China Display Optoelectronics Technology Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own HK$27m worth of China Display Optoelectronics Technology Holdings stock, about 2.1% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At China Display Optoelectronics Technology Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at China Display Optoelectronics Technology Holdings in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in China Display Optoelectronics Technology Holdings, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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