Stock Analysis

The Executive Director of Wah Ha Realty Company Limited (HKG:278), Lin Wee Cheung, Just Bought A Few More Shares

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SEHK:278
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Even if it's not a huge purchase, we think it was good to see that Lin Wee Cheung, the Executive Director of Wah Ha Realty Company Limited (HKG:278) recently shelled out HK$706k to buy stock, at HK$4.97 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

Wah Ha Realty Insider Transactions Over The Last Year

Notably, that recent purchase by Lin Wee Cheung is the biggest insider purchase of Wah Ha Realty shares that we've seen in the last year. That implies that an insider found the current price of HK$4.98 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Wah Ha Realty insiders may have bought shares in the last year, but they didn't sell any. 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!

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SEHK:278 Insider Trading Volume February 4th 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.

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. Wah Ha Realty insiders own 51% of the company, currently worth about HK$304m based on the recent share price. 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 purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Wah Ha Realty. Nice! 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. Our analysis shows 3 warning signs for Wah Ha Realty (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

But note: Wah Ha Realty may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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