Executive Chairman Of Wisdom Wealth Resources Investment Holding Group Sold 100% Of Their Shares

Some Wisdom Wealth Resources Investment Holding Group Limited (HKG:7) shareholders may be a little concerned to see that the Executive Chairman, Chi Ming Hui, recently sold a substantial HK$77m worth of stock at a price of HK$0.046 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for Wisdom Wealth Resources Investment Holding Group

Wisdom Wealth Resources Investment Holding Group Insider Transactions Over The Last Year

Notably, that recent sale by Chi Ming Hui is the biggest insider sale of Wisdom Wealth Resources Investment Holding Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.047). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Chi Ming Hui's stake.

Chi Ming Hui ditched 1.70b shares over the year. The average price per share was HK$0.047. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Wisdom Wealth Resources Investment Holding Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Wisdom Wealth Resources Investment Holding Group insiders own 53% of the company, worth about HK$79m. 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 Wisdom Wealth Resources Investment Holding Group Tell Us?

An insider sold Wisdom Wealth Resources Investment Holding Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wisdom Wealth Resources Investment Holding Group. When we did our research, we found 5 warning signs for Wisdom Wealth Resources Investment Holding Group (1 is concerning!) that we believe deserve your full attention.

Of course Wisdom Wealth Resources Investment Holding Group 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.