We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Oi Wah Pawnshop Credit Holdings Limited (HKG:1319).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

Check out our latest analysis for Oi Wah Pawnshop Credit Holdings

Oi Wah Pawnshop Credit Holdings Insider Transactions Over The Last Year

insider Kam Cheong Yan made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.3m worth of shares at a price of HK$0.29 each. So it's clear an insider wanted to buy, at around the current price, which is HK$0.29. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Kam Cheong Yan was the only individual insider to buy shares in the last twelve months.

Kam Cheong Yan bought 20.05m shares over the last 12 months at an average price of HK$0.29. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Oi Wah Pawnshop Credit Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Oi Wah Pawnshop Credit Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 17% of Oi Wah Pawnshop Credit Holdings shares, worth about HK$96m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.