Man Lok Chen of World Super Holdings Limited (HKG:8612) Just Spent HK$966k On Shares

By
Simply Wall St
Published
February 24, 2021
SEHK:8612

Investors who take an interest in World Super Holdings Limited (HKG:8612) should definitely note that insider Man Lok Chen recently paid HK$0.16 per share to buy HK$966k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.

See our latest analysis for World Super Holdings

World Super Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Director, Hei Yuen Fok, for HK$38m worth of shares, at about HK$1.17 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.14. So it may not tell us anything about how insiders feel about the current share price. Hei Yuen Fok was the only individual insider to sell over the last year.

Hei Yuen Fok ditched 75.00m shares over the year. The average price per share was HK$0.57. 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!

insider-trading-volume
SEHK:8612 Insider Trading Volume February 24th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does World Super Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. World Super Holdings insiders own about HK$48m worth of shares (which is 52% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At World Super Holdings Tell Us?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, World Super Holdings insiders are reasonably well aligned, and optimistic for the future. 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. You'd be interested to know, that we found 3 warning signs for World Super Holdings and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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