Some Wenye Group Holdings Limited (HKG:1802) shareholders may be a little concerned to see that insider Pak San Li recently sold a substantial HK$8.6m worth of stock at a price of HK$0.11 per share. That sale reduced their total holding by 50% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Wenye Group Holdings
The Last 12 Months Of Insider Transactions At Wenye Group Holdings
Notably, that recent sale by insider Pak San Li was not the only time they traded Wenye Group Holdings shares this year. Earlier in the year, they spent HK$30m to buy shares at HK$0.20 per share. That means that even when the share price was higher than HK$0.086 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Pak San Li was the only individual insider to buy during the last year. Notably Pak San Li was also the biggest seller.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Of Wenye Group Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Wenye Group Holdings insiders own 65% of the company, currently worth about HK$33m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Wenye Group Holdings Tell Us?
An insider hasn't bought Wenye Group Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wenye Group Holdings. Case in point: We've spotted 4 warning signs for Wenye Group Holdings you should be aware of.
But note: Wenye Group 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 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.