Some MTT Group Holdings Limited (HKG:2350) shareholders may be a little concerned to see that the Executive Chairman of the Board & CEO, Ka Wai Ip, recently sold a substantial HK$5.0m worth of stock at a price of HK$0.51 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.5%.
See our latest analysis for MTT Group Holdings
The Last 12 Months Of Insider Transactions At MTT Group Holdings
Notably, that recent sale by Executive Chairman of the Board & CEO Ka Wai Ip was not the only time they sold MTT Group Holdings shares this year. They previously made an even bigger sale of -HK$17m worth of shares at a price of HK$0.68 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.51. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of MTT Group Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of MTT Group Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that MTT Group Holdings insiders own 68% of the company, worth about HK$217m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The MTT Group Holdings Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. 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. 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. Be aware that MTT Group Holdings is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course MTT Group 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.
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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.