Shareholders Can't Ignore CN¥13m Of Sales By Wenye Group Holdings Insiders

Even though Wenye Group Holdings Limited (HKG:1802) stock gained 13% last week, insiders who sold CN¥13m worth of stock over the past year are probably better off. Selling at an average price of CN¥0.11, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Wenye Group Holdings

The Last 12 Months Of Insider Transactions At Wenye Group Holdings

The insider, Pak San Li, made the biggest insider sale in the last 12 months. That single transaction was for HK$8.6m worth of shares at a price of HK$0.11 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.044. So it may not shed much light on insider confidence at current levels. Pak San Li was the only individual insider to sell shares in the last twelve months.

Pak San Li sold a total of 125.10m shares over the year at an average price of CN¥0.11. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Wenye Group Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Wenye Group Holdings insiders own 24% of the company, worth about HK$6.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Wenye Group Holdings Insiders?

It doesn't really mean much that no insider has traded Wenye Group Holdings shares in the last quarter. We don't take much encouragement from the transactions by Wenye Group Holdings insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wenye Group Holdings. To that end, you should learn about the 6 warning signs we've spotted with Wenye Group Holdings (including 5 which are a bit unpleasant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.