This Insider Has Just Sold Shares In Wan Leader International Limited (HKG:8482)

We wouldn't blame Wan Leader International Limited (HKG:8482) shareholders if they were a little worried about the fact that Hak Yu Loy, the CEO & Executive Chairman recently netted about HK$7.5m selling shares at an average price of HK$0.13. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Wan Leader International

Wan Leader International Insider Transactions Over The Last Year

In fact, the recent sale by Hak Yu Loy was the biggest sale of Wan Leader International shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.15. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 12% of Hak Yu Loy's holding.

Over the last year we saw more insider selling of Wan Leader International shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Wan Leader International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Wan Leader International insiders own about HK$74m worth of shares (which is 57% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Wan Leader International Insiders?

Unfortunately, there has been more insider selling of Wan Leader International stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. Every company has risks, and we've spotted 4 warning signs for Wan Leader International (of which 1 doesn't sit too well with us!) you should know about.

But note: Wan Leader International 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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