Have Wharf (Holdings) Limited (HKG:4) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 18, 2022
SEHK:4
Source: Shutterstock

We'd be surprised if Wharf (Holdings) Limited (HKG:4) shareholders haven't noticed that the Deputy Chairman, On Kiu Chow, recently sold HK$1.3m worth of stock at HK$25.50 per share. However, the silver lining is that the sale only reduced their total holding by 8.5%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Wharf (Holdings)

Wharf (Holdings) Insider Transactions Over The Last Year

The Executive Director Yen Thean Leng made the biggest insider purchase in the last 12 months. That single transaction was for HK$9.6m worth of shares at a price of HK$15.92 each. We do like to see buying, but this purchase was made at well below the current price of HK$24.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 870.00k shares worth HK$14m. But they sold 1.79m shares for HK$47m. In total, Wharf (Holdings) insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:4 Insider Trading Volume March 18th 2022

I will like Wharf (Holdings) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Wharf (Holdings)

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Wharf (Holdings) insiders own 0.2% of the company, worth about HK$167m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Wharf (Holdings) Tell Us?

An insider sold Wharf (Holdings) shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Wharf (Holdings) is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Wharf (Holdings).

Of course Wharf (Holdings) may not be the best stock to buy. So you may wish to see this free collection of high quality 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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