One Hong Wei (Asia) Holdings Insider Raised Their Stake In The Previous Year

Looking at Hong Wei (Asia) Holdings Company Limited's (HKG:8191 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Hong Wei (Asia) Holdings

In fact, the recent sale by insider Hin Ming Chu was not their only trade of Hong Wei (Asia) Holdings shares this year. Earlier in the year, they spent HK$795k to buy shares at HK$0.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.15). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hin Ming Chu was the only individual insider to buy during the last year. Notably Hin Ming Chu was also the biggest seller.

Hin Ming Chu purchased 10.53m shares over the year. The average price per share was HK$0.15. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Hong Wei (Asia) Holdings

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Insiders At Hong Wei (Asia) Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Hong Wei (Asia) Holdings shares. Specifically, insider Hin Ming Chu ditched HK$1.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hong Wei (Asia) Holdings insiders own 43% of the company, currently worth about HK$4.0m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Hong Wei (Asia) Holdings Insiders?

An insider sold Hong Wei (Asia) Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. 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 that end, you should learn about the 4 warning signs we've spotted with Hong Wei (Asia) Holdings (including 2 which are concerning).

But note: Hong Wei (Asia) 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.