China Wantian Holdings Executive Director Chi Ching Liu Sells 40% Of Holding

Some China Wantian Holdings Limited (HKG:1854) shareholders may be a little concerned to see that the Executive Director, Chi Ching Liu, recently sold a substantial HK$50m worth of stock at a price of HK$0.70 per share. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for China Wantian Holdings

China Wantian Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Chi Ching Liu is the biggest insider sale of China Wantian Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$1.49. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 40% of Chi Ching Liu's holding.

Chi Ching Liu ditched 94.00m shares over the year. The average price per share was HK$0.71. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of China Wantian Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 14% of China Wantian Holdings shares, worth about HK$404m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At China Wantian Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Wantian Holdings. When we did our research, we found 3 warning signs for China Wantian Holdings (1 doesn't sit too well with us!) that we believe deserve your full attention.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.