A HK$229m Market Cap Boost Pleasing ToChina Wantian Holdings Insiders

China Wantian Holdings Limited (HKG:1854) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a HK$229m addition to the company’s market value. Put another way, the original HK$29.8m acquisition is now worth HK$49.8m.

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 China Wantian Holdings

The Last 12 Months Of Insider Transactions At China Wantian Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Ping Man Kwong bought HK$13m worth of shares at a price of HK$0.61 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.98. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Ping Man Kwong purchased 50.84m shares over the year. The average price per share was HK$0.59. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

China Wantian Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at China Wantian Holdings. In total, insider Ping Man Kwong sold HK$6.0m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. 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 appears that China Wantian Holdings insiders own 16% of the company, worth about HK$299m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About China Wantian Holdings Insiders?

An insider sold China Wantian Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Wantian Holdings. To that end, you should learn about the 3 warning signs we've spotted with China Wantian Holdings (including 1 which shouldn't be ignored).

But note: China Wantian Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.