Viewing insider transactions for New World Development Company Limited's (HKG:17 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for New World Development
The Last 12 Months Of Insider Transactions At New World Development
Over the last year, we can see that the biggest insider sale was by the Non-Executive Vice Chairman, Wai-Hoi Doo, for HK$16m worth of shares, at about HK$20.12 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$14.54. So it may not shed much light on insider confidence at current levels. Wai-Hoi Doo was the only individual insider to sell over the last year.
Wai-Hoi Doo sold a total of 1.88m shares over the year at an average price of HK$20.83. 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!
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Insider Ownership
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. New World Development insiders own about HK$132m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At New World Development Tell Us?
It doesn't really mean much that no insider has traded New World Development shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the New World Development insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing New World Development. To that end, you should learn about the 3 warning signs we've spotted with New World Development (including 1 which can't be ignored).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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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.