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Selling MO$4.0m Of Stock Was Lucrative Decision For Wai Hung Group Holdings Insiders

Simply Wall St · 05/28/2025 22:21

Despite a 11% gain in Wai Hung Group Holdings Limited's (HKG:3321) stock price this week, shareholders shouldn't let up. The fact that insiders chose to dispose of MO$4.0m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Wai Hung Group Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Loke Che-Chan Gilbert, sold HK$4.0m worth of shares at a price of HK$0.04 per share. That means that an insider was selling shares at slightly below the current price (HK$0.062). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 99% of Loke Che-Chan Gilbert's stake. Loke Che-Chan Gilbert was the only individual insider to sell over the last year. Notably Loke Che-Chan Gilbert was also the biggest buyer, having purchased HK$2.1m worth of shares.

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!

View our latest analysis for Wai Hung Group Holdings

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SEHK:3321 Insider Trading Volume May 28th 2025

I will like Wai Hung Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Wai Hung Group Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Wai Hung Group Holdings insiders own 45% of the company, currently worth about HK$17m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

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What Might The Insider Transactions At Wai Hung Group Holdings Tell Us?

It doesn't really mean much that no insider has traded Wai Hung Group Holdings shares in the last quarter. While we feel good about high insider ownership of Wai Hung Group Holdings, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Wai Hung Group Holdings (3 shouldn't be ignored!) and we strongly recommend you look at these before investing.

But note: Wai Hung 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.