Investors who take an interest in World Super Holdings Limited (HKG:8612) should definitely note that insider Qingrui Wen recently paid HK$0.10 per share to buy HK$2.7m worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 34%.
See our latest analysis for World Super Holdings
The Last 12 Months Of Insider Transactions At World Super Holdings
In the last twelve months, the biggest single sale by an insider was when the insider, Man Lok Chen, sold HK$17m worth of shares at a price of HK$0.35 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. The good news is that this large sale was at well above current price of HK$0.10. So it is hard to draw any strong conclusion from it. Man Lok Chen was the only individual insider to sell over the last year.
Man Lok Chen sold a total of 88.50m shares over the year at an average price of HK$0.28. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!SEHK:8612 Insider Trading Volume May 4th 2022
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Does World Super Holdings Boast High Insider Ownership?
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. World Super Holdings insiders own 42% of the company, currently worth about HK$36m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About World Super Holdings Insiders?
It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, World Super Holdings insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing World Super Holdings. Case in point: We've spotted 4 warning signs for World Super Holdings you should be aware of, and 2 of them make us uncomfortable.
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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.