This Insider Has Just Sold Shares In Wharf (Holdings) Limited (HKG:4)

Anyone interested in Wharf (Holdings) Limited (HKG:4) should probably be aware that the Deputy Chairman, On Kiu Chow, recently divested HK$994k worth of shares in the company, at an average price of HK$19.88 each. On the bright side, that sale was only 7.1% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Wharf (Holdings)

Wharf (Holdings) Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Vice Chairman, Yuk Fong Lee, for HK$13m worth of shares, at about HK$20.16 per share. That means that an insider was selling shares at slightly below the current price (HK$20.60). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 69% of Yuk Fong Lee's stake.

Wharf (Holdings) insiders didn't buy any shares over the last year. 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!

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)

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. Wharf (Holdings) insiders own about HK$113m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Wharf (Holdings) Insider Transactions Indicate?

Insiders sold Wharf (Holdings) shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Wharf (Holdings) is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. At Simply Wall St, we found 1 warning sign for Wharf (Holdings) that deserve your attention before buying any shares.

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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This article by Simply Wall St is general in nature. 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.
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