Despite the fact that Viva Goods Company Limited's (HKG:933) value has dropped 13% in the last week insiders who sold HK$980k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of HK$1.39 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Viva Goods

The Last 12 Months Of Insider Transactions At Viva Goods

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Wing Man Ma, sold HK$980k worth of shares at a price of HK$1.39 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.78). 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 Wing Man Ma.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Viva Goods Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Viva Goods insiders own 4.4% of the company, worth about HK$330m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Viva Goods Insiders?

It doesn't really mean much that no insider has traded Viva Goods shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Viva Goods insiders selling. While we like knowing 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. To that end, you should learn about the 2 warning signs we've spotted with Viva Goods (including 1 which is a bit concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.