The fact that multiple Wharf (Holdings) Limited (HKG:4) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Wharf (Holdings)
The Last 12 Months Of Insider Transactions At Wharf (Holdings)
Over the last year, we can see that the biggest insider sale was by the insider, On Kiu Chow, for HK$4.4m worth of shares, at about HK$29.15 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$28.00. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Wharf (Holdings) didn't buy any shares in the last year. 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!SEHK:4 Insider Trading Volume July 5th 2022
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Wharf (Holdings) insiders own about HK$203m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Wharf (Holdings) Tell Us?
The fact that there have been no Wharf (Holdings) insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Wharf (Holdings) insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wharf (Holdings). Every company has risks, and we've spotted 1 warning sign for Wharf (Holdings) you should know about.
Of course Wharf (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.