Whilst it may not be a huge deal, we thought it was good to see that the Wealthink AI-Innovation Capital Limited (HKG:1140) Executive Director, Zhiwei Liu, recently bought HK$742k worth of stock, for HK$0.086 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Wealthink AI-Innovation Capital Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Fang Yang, sold HK$67m worth of shares at a price of HK$0.12 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.097). So it may not tell us anything about how insiders feel about the current share price. Fang Yang was the only individual insider to sell shares in the last twelve months.

Fang Yang sold a total of 733.60m shares over the year at an average price of HK$0.12. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Wealthink AI-Innovation Capital insiders own 44% of the company, worth about HK$446m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Wealthink AI-Innovation Capital Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Wealthink AI-Innovation Capital, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Wealthink AI-Innovation Capital.

But note: Wealthink AI-Innovation Capital 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.