Yik Wo International Holdings Limited (HKG:8659) insiders have profited after buying stock worth CN¥17m last year, current gains stand at CN¥24m

Insiders who purchased Yik Wo International Holdings Limited (HKG:8659) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After accounting for the recent loss, the CN¥17m worth of shares they purchased is now worth CN¥41m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Yik Wo International Holdings

Yik Wo International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & Compliance Officer Youjiang Xu for HK$17m worth of shares, at about HK$0.23 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.55), we still think insider buying is a positive. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Yik Wo International Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Yik Wo International Holdings insiders own about HK$253m worth of shares (which is 61% 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.

So What Do The Yik Wo International Holdings Insider Transactions Indicate?

The fact that there have been no Yik Wo International Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Yik Wo International Holdings insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Yik Wo International Holdings 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, but not derivative transactions.

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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.