Insider Buying: Wealthink AI-Innovation Capital Executive Director Bought HK$742k Of Shares

Even if it's not a huge purchase, we think it was good to see that Zhiwei Liu, the Executive Director of Wealthink AI-Innovation Capital Limited (HKG:1140) recently shelled out HK$742k to buy stock, at HK$0.086 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Wealthink AI-Innovation Capital

The Last 12 Months Of Insider Transactions At Wealthink AI-Innovation Capital

Over the last year, we can see that the biggest insider sale was by the insider, Fang Yang, for HK$67m worth of shares, at about HK$0.12 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.097. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Fang Yang.

Fang Yang sold a total of 733.60m shares over the year at an average price of HK$0.12. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Wealthink AI-Innovation Capital better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Wealthink AI-Innovation Capital Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Wealthink AI-Innovation Capital insiders own 44% of the company, currently worth about HK$446m based on the recent share price. 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 Does This Data Suggest About Wealthink AI-Innovation Capital Insiders?

The insider sales have outweighed the insider buying, at Wealthink AI-Innovation Capital, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 2 warning signs with Wealthink AI-Innovation Capital and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.