We wouldn't blame World Super Holdings Limited (HKG:8612) shareholders if they were a little worried about the fact that Peng Kan Sou, the Chairman recently netted about HK$10m selling shares at an average price of HK$0.10. That sale reduced their total holding by 38% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for World Super Holdings

The Last 12 Months Of Insider Transactions At World Super Holdings

Notably, that recent sale by Peng Kan Sou is the biggest insider sale of World Super Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of HK$0.098. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like World Super 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

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. World Super Holdings insiders own about HK$36m worth of shares (which is 42% 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 World Super Holdings Insider Transactions Indicate?

An insider sold World Super Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 4 warning signs for World Super Holdings (1 is concerning) you should be aware of.

Of course World Super Holdings 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, but not derivative transactions.

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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.