Stock Analysis

Wen Wen Fang of Future World Holdings Limited (HKG:572) Just Spent HK$402k On Shares

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Whilst it may not be a huge deal, we thought it was good to see that Wen Wen Fang, who is a company insider, recently bought HK$402k worth of stock, for HK$1.50 per share. However, it only increased their shares held by 4.6%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Future World Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Mingzhong Liu bought HK$10m worth of shares at a price of HK$0.90 per share. We do like to see buying, but this purchase was made at well below the current price of HK$1.50. 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.

In the last twelve months insiders purchased 63.45m shares for HK$51m. On the other hand they divested 1.30m shares, for HK$7.5m. Overall, Future World Holdings insiders were net buyers during the last year. Their average price was about HK$0.80. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:572 Insider Trading Volume March 16th 2023

Future World Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Future World Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Future World Holdings insiders own 56% of the company, currently worth about HK$98m 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 Future World Holdings Insiders?

The stark truth for Future World Holdings is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. While we like knowing 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. At Simply Wall St, we've found that Future World Holdings has 6 warning signs (4 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

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