Some China Wantian Holdings Limited (HKG:1854) shareholders may be a little concerned to see that the Executive Director, Chi Ching Liu, recently sold a substantial HK$50m worth of stock at a price of HK$0.70 per share. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we've seen.

China Wantian Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Chi Ching Liu is the biggest insider sale of China Wantian Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$1.50). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 40% of Chi Ching Liu's holding.

Chi Ching Liu divested 94.00m shares over the last 12 months at an average price of HK$0.71. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of China Wantian 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. We usually like to see fairly high levels of insider ownership. China Wantian Holdings insiders own about HK$407m worth of shares. That equates to 14% 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 Does This Data Suggest About China Wantian Holdings Insiders?

An insider sold China Wantian Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Wantian Holdings. Our analysis shows 3 warning signs for China Wantian Holdings (1 is concerning!) and we strongly recommend you look at them before investing.

Of course China Wantian Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.