Chairlady Guozun Ren Sold A Bunch Of Shares In Wisdom Sports Group

Some Wisdom Sports Group (HKG:1661) shareholders may be a little concerned to see that the Chairlady, Guozun Ren , recently sold a substantial HK$100m worth of stock at a price of HK$0.25 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 66% of their entire holding.

Check out our latest analysis for Wisdom Sports Group

Wisdom Sports Group Insider Transactions Over The Last Year

Notably, that recent sale by Guozun Ren is the biggest insider sale of Wisdom Sports Group shares that we've seen in the last year. 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$0.063. So it may not shed much light on insider confidence at current levels.

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!

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Does Wisdom Sports Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 38% of Wisdom Sports Group shares, worth about HK$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Wisdom Sports Group Insiders?

An insider sold Wisdom Sports Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Be aware that Wisdom Sports Group is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...

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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