Trade Alert: Man Lok Chen At World Super Holdings Limited (HKG:8612), Has Just Spent HK$4.2m Buying 51% More Shares

Those following along with World Super Holdings Limited (HKG:8612) will no doubt be intrigued by the recent purchase of shares by insider Man Lok Chen, who spent a stonking HK$4.2m on stock at an average price of HK$0.14. That increased their holding by a full 51%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for World Super Holdings

The Last 12 Months Of Insider Transactions At World Super Holdings

The Executive Director, Hei Yuen Fok, made the biggest insider sale in the last 12 months. That single transaction was for HK$38m worth of shares at a price of HK$1.17 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.17). So it may not shed much light on insider confidence at current levels. Hei Yuen Fok was the only individual insider to sell shares in the last twelve months.

Hei Yuen Fok sold a total of 75.00m shares over the year at an average price of HK$0.57. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. World Super Holdings insiders own about HK$69m worth of shares (which is 57% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of World Super Holdings.

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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