This Insider Has Just Sold Shares In Wealthink AI-Innovation Capital

We wouldn't blame Wealthink AI-Innovation Capital Limited (HKG:1140) shareholders if they were a little worried about the fact that Zhiwei Liu, a company insider, recently netted about HK$303m selling shares at an average price of HK$0.11. Probably the most concerning element of the whole transaction is that the disposal amounted to 99% of their entire holding.

See our latest analysis for Wealthink AI-Innovation Capital

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

In fact, the recent sale by Zhiwei Liu was the biggest sale of Wealthink AI-Innovation Capital shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.099. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Wealthink AI-Innovation Capital than they bought, over the last year. 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!

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.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Wealthink AI-Innovation Capital insiders own about HK$449m worth of shares (which is 43% 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 Does This Data Suggest About Wealthink AI-Innovation Capital Insiders?

The stark truth for Wealthink AI-Innovation Capital is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Wealthink AI-Innovation Capital you should be aware of.

But note: Wealthink AI-Innovation Capital 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.