Insiders who bought China Wantian Holdings Limited (HKG:1854) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$440m as a result of the stock's 23% gain over the same period. As a result, the stock they originally bought for HK$25.4m is now worth HK$52.1m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for China Wantian Holdings
The Last 12 Months Of Insider Transactions At China Wantian Holdings
Over the last year, we can see that the biggest insider purchase was by insider Ping Man Kwong for HK$13m worth of shares, at about HK$0.61 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.25. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Ping Man Kwong bought 41.68m shares over the last 12 months at an average price of HK$0.61. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Wantian Holdings insiders own about HK$381m worth of shares. That equates to 16% 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.
So What Does This Data Suggest About China Wantian Holdings Insiders?
The fact that there have been no China Wantian Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like China Wantian Holdings insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with China Wantian Holdings (including 1 which shouldn't be ignored).
Of course China Wantian 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 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.