We note that the Wai Kee Holdings Limited (HKG:610) Executive Chairman, Wei Pao Zen, recently sold HK$776k worth of stock for HK$1.72 per share. However we note that the sale only shrunk their holding by 0.2%.
Check out our latest analysis for Wai Kee Holdings
The Last 12 Months Of Insider Transactions At Wai Kee Holdings
Notably, that recent sale by Executive Chairman Wei Pao Zen was not the only time they sold Wai Kee Holdings shares this year. They previously made an even bigger sale of -HK$3.4m worth of shares at a price of HK$2.06 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.68. So it is hard to draw any strong conclusion from it.
Wei Pao Zen divested 2.12m shares over the last 12 months at an average price of HK$1.98. 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!
I will like Wai Kee 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 Of Wai Kee Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Wai Kee Holdings insiders own 63% of the company, currently worth about HK$839m based on the recent share price. 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 there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wai Kee Holdings. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Wai Kee Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.