WK Group (Holdings) Insiders Up HK$281m On HK$70.2m Investment
Insiders who bought WK Group (Holdings) Limited (HKG:2535) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Even after accounting for the recent loss, the HK$70.2m worth of stock purchased by them is now worth HK$351.0m or in other words, their investment continues to give good returns.
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.
WK Group (Holdings) Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Wing Keung Chan for HK$70m worth of shares, at about HK$0.09 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.45. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
Check out our latest analysis for WK Group (Holdings)
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of WK 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. We usually like to see fairly high levels of insider ownership. It appears that WK Group (Holdings) insiders own 39% of the company, worth about HK$351m. 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 WK Group (Holdings) Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest WK Group (Holdings) insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. For example, WK Group (Holdings) has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
But note: WK 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.