Executive Chairman of China Wantian Holdings Kok Wai Hooy Buys 11% More Shares

Those following along with China Wantian Holdings Limited (HKG:1854) will no doubt be intrigued by the recent purchase of shares by Kok Wai Hooy, Executive Chairman of the company, who spent a stonking HK$12m on stock at an average price of HK$1.23. Not only is that a big swing, but it increased their holding size by 11%, which is definitely great to see.

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The Last 12 Months Of Insider Transactions At China Wantian Holdings

In fact, the recent purchase by Kok Wai Hooy was the biggest purchase of China Wantian Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$1.18 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kok Wai Hooy was the only individual insider to buy during the last year.

Kok Wai Hooy bought a total of 24.59m shares over the year at an average price of HK$1.26. 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!

Check out our latest analysis for China Wantian Holdings

China Wantian Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of China Wantian Holdings shares, worth about HK$243m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At China Wantian Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest China Wantian Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that China Wantian Holdings has 1 warning sign and it would be unwise to ignore this.

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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.