Some Tongcheng Travel Holdings Limited (HKG:780) shareholders may be a little concerned to see that the Non-Executive Co-Chairman, Jianzhang Liang, recently sold a substantial HK$28m worth of stock at a price of HK$20.07 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.7%.

See our latest analysis for Tongcheng Travel Holdings

The Last 12 Months Of Insider Transactions At Tongcheng Travel Holdings

Notably, that recent sale by Jianzhang Liang is the biggest insider sale of Tongcheng Travel Holdings shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$17.60. So it is hard to draw any strong conclusion from it.

Jianzhang Liang sold a total of 3.19m shares over the year at an average price of CN¥21.22. 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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Tongcheng Travel Holdings insiders own 1.9% of the company, worth about HK$780m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tongcheng Travel Holdings Tell Us?

An insider hasn't bought Tongcheng Travel Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Tongcheng Travel Holdings is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Tongcheng Travel Holdings you should be aware of.

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.

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.