Stock Analysis

Insider Buying: The Wah Ha Realty Company Limited (HKG:278) Head of General Management - the Group & Executive Director Just Bought HK$130k Worth Of Shares

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SEHK:278
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Whilst it may not be a huge deal, we thought it was good to see that the Wah Ha Realty Company Limited (HKG:278) Head of General Management - the Group & Executive Director, Ying Wai Cheung, recently bought HK$130k worth of stock, for HK$5.00 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Wah Ha Realty

The Last 12 Months Of Insider Transactions At Wah Ha Realty

In fact, the recent purchase by Ying Wai Cheung was the biggest purchase of Wah Ha Realty shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$5.00. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Wah Ha Realty share holders is that an insider was buying at near the current price. Ying Wai Cheung was the only individual insider to buy during the last year.

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!

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SEHK:278 Insider Trading Volume January 5th 2021

Wah Ha Realty is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Wah Ha Realty Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It's great to see that Wah Ha Realty insiders own 50% of the company, worth about HK$305m. 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 Wah Ha Realty Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Wah Ha Realty. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Wah Ha Realty.

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, but not derivative transactions.

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