Insiders were net buyers of Want Want China Holdings Limited's (HKG:151 ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 1 warning sign investors should be aware of before investing in Want Want China Holdings. Read for free now.The Last 12 Months Of Insider Transactions At Want Want China Holdings
The Chairman & CEO Eng-Meng Tsai made the biggest insider purchase in the last 12 months. That single transaction was for HK$16m worth of shares at a price of HK$4.40 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$4.98. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Eng-Meng Tsai bought a total of 18.19m shares over the year at an average price of HK$4.43. 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!
See our latest analysis for Want Want China Holdings
Want Want China Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Want Want China Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Want Want China Holdings insiders own about HK$34b worth of shares (which is 58% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Want Want China Holdings Insider Transactions Indicate?
The fact that there have been no Want Want China Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Want Want China Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Want Want China Holdings that deserve your attention before buying any shares.
Of course Want Want China 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.