Tsz Hong Chan At Wisdomcome Group Holdings Tops Up Holding By HK$3.6m

Investors who take an interest in Wisdomcome Group Holdings Limited (HKG:8079) should definitely note that insider Tsz Hong Chan recently paid HK$0.40 per share to buy HK$3.6m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Wisdomcome Group Holdings

The Last 12 Months Of Insider Transactions At Wisdomcome Group Holdings

In fact, the recent purchase by Tsz Hong Chan was the biggest purchase of Wisdomcome Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$0.40 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 10.86m shares for HK$5.5m. But insiders sold 9.09m shares worth HK$3.7m. In total, Wisdomcome Group Holdings insiders bought more than they sold over the last year. The average buy price was around HK$0.50. This is nice to see since it implies that insiders might see value around current prices. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Wisdomcome Group Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Wisdomcome Group Holdings insiders own about HK$6.3m worth of shares (which is 51% 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.

So What Do The Wisdomcome Group Holdings Insider Transactions Indicate?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Wisdomcome Group Holdings insiders feel good about the company's future. While it's good to be aware of 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 that end, you should learn about the 5 warning signs we've spotted with Wisdomcome Group Holdings (including 2 which make us uncomfortable).

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.

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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.