We'd be surprised if Wanka Online Inc. (HKG:1762) shareholders haven't noticed that the Founder & Executive Chairman of the Board, Dinan Gao, recently sold HK$2.5m worth of stock at HK$0.17 per share. On the bright side, that sale was only 5.3% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Wanka Online

The Last 12 Months Of Insider Transactions At Wanka Online

Notably, that recent sale by Dinan Gao is the biggest insider sale of Wanka Online shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.18). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.3%of Dinan Gao's holding.

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

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Wanka Online

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Wanka Online insiders own 33% of the company, worth about HK$85m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Wanka Online Insider Transactions Indicate?

The stark truth for Wanka Online is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wanka Online. While conducting our analysis, we found that Wanka Online has 2 warning signs and it would be unwise to ignore these.

Of course Wanka Online 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.