WebX International Holdings Insiders Who Sold Avert HK$102m Market Cap Dip

Insiders seem to have made the most of their holdings by selling HK$7.8m worth of WebX International Holdings Company Limited (HKG:8521) stock at an average sell price of HK$0.31 during the past year. The company's market worth decreased by HK$102m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At WebX International Holdings

In the last twelve months, the biggest single sale by an insider was when the insider, Yingyang Li, sold HK$7.8m worth of shares at a price of HK$0.31 per share. That means that even when the share price was below the current price of HK$1.33, an insider wanted to cash in some shares. 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 just 31% of Yingyang Li's stake. Yingyang Li was the only individual insider to sell over the last year.

Yingyang Li divested 25.59m shares over the last 12 months at an average price of HK$0.31. 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!

See our latest analysis for WebX International Holdings

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Insiders At WebX International Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of WebX International Holdings shares. In total, insider Yingyang Li sold HK$7.8m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of WebX International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that WebX International Holdings insiders own 49% of the company, worth about HK$415m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About WebX International Holdings Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WebX International Holdings. To that end, you should learn about the 2 warning signs we've spotted with WebX International Holdings (including 1 which can't be ignored).

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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.