WAC Holdings Reaches HK$328m Market Cap Benefiting Insider Stock Buying

Insiders who bought WAC Holdings Limited (HKG:8619) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$61m as a result of the stock's 23% gain over the same period. In other words, the original HK$1.41m purchase is now worth HK$12.5m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for WAC Holdings

WAC Holdings Insider Transactions Over The Last Year

The insider Man Hin Wong made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.4m worth of shares at a price of HK$0.032 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.28. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that WAC Holdings insiders own 12% of the company, worth about HK$40m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The WAC Holdings Insider Transactions Indicate?

The fact that there have been no WAC Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in WAC Holdings and we see no evidence to suggest they are worried about 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. When we did our research, we found 2 warning signs for WAC Holdings (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course WAC Holdings 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.