We wouldn't blame WAC Holdings Limited (HKG:8619) shareholders if they were a little worried about the fact that Yanhong Zhang, a company insider, recently netted about HK$95m selling shares at an average price of HK$1.90. Probably the most concerning element of the whole transaction is that the dump amounted to 54% of their entire holding.

See our latest analysis for WAC Holdings

The Last 12 Months Of Insider Transactions At WAC Holdings

Notably, that recent purchase by insider Yanhong Zhang was not the only time they bought WAC Holdings shares this year. Earlier in the year, they paid HK$0.80 per share in a HK$153m purchase. Even though the purchase was made at a significantly lower price than the recent price (HK$2.04), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In total, WAC Holdings insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of WAC Holdings shares, worth about HK$205m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The WAC Holdings Insider Transactions Indicate?

An insider sold WAC Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course WAC 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.