Insiders who bought Yuk Wing Group Holdings Limited (HKG:1536) stock in the last 12 months recover some losses, but still down HK$248k

By
Simply Wall St
Published
January 17, 2022
SEHK:1536
Source: Shutterstock

Insiders who bought HK$674k worth of Yuk Wing Group Holdings Limited (HKG:1536) stock in the last year have seen some of their losses recouped as the stock gained 17% last week. However, total losses seen by insiders are still HK$248k but in since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Yuk Wing Group Holdings

Yuk Wing Group Holdings Insider Transactions Over The Last Year

The insider Shixin Huang made the biggest insider purchase in the last 12 months. That single transaction was for HK$674k worth of shares at a price of HK$0.26 each. That means that even when the share price was higher than HK$0.16 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Shixin Huang was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:1536 Insider Trading Volume January 17th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Yuk Wing Group Holdings insiders own 62% of the company, worth about HK$38m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Yuk Wing Group Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Yuk Wing Group Holdings insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Yuk Wing Group Holdings.

But note: Yuk Wing 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, but not derivative transactions.

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