Trade Alert: The CEO & Executive Chairman Of Wan Leader International Limited (HKG:8482), Hak Yu Loy, Has Sold Some Shares Recently

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$34m selling shares at an average price of HK$0.24. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

See our latest analysis for Wan Leader International

The Last 12 Months Of Insider Transactions At Wan Leader International

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. That means that an insider was selling shares at around the current price of HK$0.23. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Wan Leader International insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Wan Leader International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wan Leader International insiders own about HK$104m worth of shares (which is 50% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Wan Leader International Insider Transactions Indicate?

The stark truth for Wan Leader International is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Wan Leader International is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

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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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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