Stock Analysis

With stock up 52%, Insiders of Winto Group (Holdings) Limited (HKG:8238) must be wishing they had bought more last year

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Winto Group (Holdings) Limited (HKG:8238) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 52%, resulting in a HK$47m rise in the company's market capitalisation. In other words, the original HK$673k purchase is now worth HK$1.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Winto Group (Holdings)

Winto Group (Holdings) Insider Transactions Over The Last Year

The Independent Non-Executive Director Man Yeung Lee made the biggest insider purchase in the last 12 months. That single transaction was for HK$673k worth of shares at a price of HK$0.14 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.27. 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!

SEHK:8238 Insider Trading Volume March 14th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Winto Group (Holdings) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Winto Group (Holdings) insiders own 63% of the company, currently worth about HK$86m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Winto Group (Holdings) Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Winto Group (Holdings) shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Winto Group (Holdings) insiders think the business has merit. 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 Winto Group (Holdings) is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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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Find out whether Winto Group (Holdings) is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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