Trade Alert: Executive Chairman & Compliance Officer Of Yik Wo International Holdings Youjiang Xu Has Sold Stock

We wouldn't blame Yik Wo International Holdings Limited (HKG:8659) shareholders if they were a little worried about the fact that Youjiang Xu, the Executive Chairman & Compliance Officer recently netted about HK$13m selling shares at an average price of HK$0.16. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Yik Wo International Holdings

In fact, the recent sale by Executive Chairman & Compliance Officer Youjiang Xu was not their only sale of Yik Wo International Holdings shares this year. They previously made an even bigger sale of -HK$19m worth of shares at a price of HK$0.16 per share. So we know that an insider sold shares at around the present share price of HK$0.15. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Youjiang Xu sold a total of 235.40m shares over the year at an average price of CN¥0.16. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Yik Wo International Holdings

I will like Yik Wo International Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Yik Wo International Holdings insiders own 48% of the company, worth about HK$55m. 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 Does This Data Suggest About Yik Wo International Holdings Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To that end, you should learn about the 5 warning signs we've spotted with Yik Wo International Holdings (including 1 which can't be ignored).

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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.