Onewo Insider Lowered Holding By 29% During Last Year

From what we can see, insiders were net sellers in Onewo Inc.'s (HKG:2602 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Onewo Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the GM & Executive Chairman, Baoquan Zhu, for HK$376m worth of shares, at about HK$18.24 per share. That means that even when the share price was below the current price of HK$21.05, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Baoquan Zhu's stake. The only individual insider seller over the last year was Baoquan Zhu. Notably Baoquan Zhu was also the biggest buyer, having purchased HK$382m worth of shares.

In the last twelve months insiders purchased 20.97m shares for HK$382m. But they sold 40.63m shares for HK$741m. Baoquan Zhu ditched 40.63m shares over the year. The average price per share was CN¥18.24. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Onewo

I will like Onewo better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Onewo 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Onewo insiders own 4.4% of the company, currently worth about HK$1.1b 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.

What Might The Insider Transactions At Onewo Tell Us?

The fact that there have been no Onewo insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Onewo, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Onewo. In terms of investment risks, we've identified 2 warning signs with Onewo and understanding these should be part of your investment process.

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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.