share_log

This Insider Has Just Sold Shares In Wai Kee Holdings Limited (HKG:610)

Simply Wall St ·  01/15/2023 08:25

We'd be surprised if Wai Kee Holdings Limited (HKG:610) shareholders haven't noticed that the Executive Chairman, Wei Pao Zen, recently sold HK$3.4m worth of stock at HK$2.06 per share. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Wai Kee Holdings

Wai Kee Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Wei Pao Zen was the biggest sale of Wai Kee Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$2.05. While insider selling is a negative, to us, it is more negative if the shares are sold 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 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!

insider-trading-volume
SEHK:610 Insider Trading Volume January 15th 2023

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

Does Wai Kee Holdings Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Wai Kee Holdings insiders own 63% of the company, worth about HK$1.0b. 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 Wai Kee Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wai Kee Holdings. Every company has risks, and we've spotted 4 warning signs for Wai Kee Holdings (of which 1 is potentially serious!) you should know about.

But note: Wai Kee Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment