Shareholders May Not Overlook Willas-Array Electronics (Holdings) Insiders Selling HK$33m In Stock

While it’s been a great week for Willas-Array Electronics (Holdings) Limited (SGX:BDR) shareholders after stock gained 12%, they should consider it with a grain of salt. In spite of the relatively cheap prices, insiders made the decision to sell HK$33m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Willas-Array Electronics (Holdings)

Willas-Array Electronics (Holdings) Insider Transactions Over The Last Year

The insider, Chun Wah Leung, made the biggest insider sale in the last 12 months. That single transaction was for S$25m worth of shares at a price of S$1.70 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (S$0.38). So it may not tell us anything about how insiders feel about the current share price.

In the last year Willas-Array Electronics (Holdings) insiders didn't buy any company stock. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Willas-Array Electronics (Holdings)

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 22% of Willas-Array Electronics (Holdings) shares, worth about S$7.2m. 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 Does This Data Suggest About Willas-Array Electronics (Holdings) Insiders?

The fact that there have been no Willas-Array Electronics (Holdings) insider transactions recently certainly doesn't bother us. Still, the insider transactions at Willas-Array Electronics (Holdings) in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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 help with this, we've discovered 5 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Willas-Array Electronics (Holdings).

But note: Willas-Array Electronics (Holdings) 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.