Wisdomcome Group Holdings Insider Sellers Miss The Bus As Stock Jumps 11%

Last week, Wisdomcome Group Holdings Limited's (HKG:8079) stock jumped 11%, but insiders who sold HK$3.7m worth of stock in over the past year are likely to be in a better position. Selling at an average price of HK$0.60, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Wisdomcome Group Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Tsz Hong Chan, sold HK$768k worth of shares at a price of HK$0.58 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.47. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Tsz Hong Chan.

Tsz Hong Chan sold a total of 6.29m shares over the year at an average price of HK$0.60. 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!

See our latest analysis for Wisdomcome Group Holdings

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Insider Ownership Of Wisdomcome Group Holdings

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. Wisdomcome Group Holdings insiders own about HK$4.8m worth of shares. That equates to 33% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Wisdomcome Group Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Wisdomcome Group Holdings shares in the last quarter. Our analysis of Wisdomcome Group Holdings insider transactions leaves us cautious. But it's good to see that insiders own shares in 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. Every company has risks, and we've spotted 2 warning signs for Wisdomcome Group Holdings you should know about.

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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.