Some Meitu, Inc. (HKG:1357) shareholders may be a little concerned to see that insider Wen Sheng Cai recently sold a substantial HK$341m worth of stock at a price of HK$6.43 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 5.1%.
View our latest analysis for Meitu
The Last 12 Months Of Insider Transactions At Meitu
Notably, that recent sale by Wen Sheng Cai is the biggest insider sale of Meitu shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$5.93. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In total, Meitu insiders sold more than they bought over the last year. 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!
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Does Meitu Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Meitu insiders own 36% of the company, currently worth about HK$9.7b based on the recent share price. 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 Meitu 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. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meitu. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Meitu.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.