Chairman & CEO of Want Want China Holdings Eng-Meng Tsai Buys More Stock

Want Want China Holdings Limited (HKG:151) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Eng-Meng Tsai, recently bought a whopping HK$5.2m worth of stock, at a price of HK$4.21. While that only increased their holding size by 0.02%, it is still a big swing by our standards.

View our latest analysis for Want Want China Holdings

The Last 12 Months Of Insider Transactions At Want Want China Holdings

Notably, that recent purchase by Eng-Meng Tsai is the biggest insider purchase of Want Want China Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$4.42. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Want Want China Holdings insider decided to buy shares at close to current prices. Eng-Meng Tsai was the only individual insider to buy shares in the last twelve months.

Eng-Meng Tsai bought a total of 2.73m shares over the year at an average price of HK$4.20. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Want Want China Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Want Want China Holdings insiders own about HK$30b worth of shares (which is 57% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Want Want China Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.