Insiders were net sellers of MS Group Holdings Limited's (HKG:1451 ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
We've discovered 2 warning signs about MS Group Holdings. View them for free.MS Group Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Kwok-Keung Chung, for HK$1.6m worth of shares, at about HK$1.21 per share. That means that an insider was selling shares at around the current price of HK$1.14. 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. Kwok-Keung Chung was the only individual insider to sell over the last year.
Kwok-Keung Chung sold a total of 2.82m shares over the year at an average price of HK$1.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for MS Group Holdings
I will like MS Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
MS Group Holdings Insiders Are Selling The Stock
The last three months saw significant insider selling at MS Group Holdings. Specifically, CEO & Executive Director Kwok-Keung Chung ditched HK$3.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of MS Group Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. MS Group Holdings insiders own about HK$168m worth of shares (which is 74% of the company). 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 Does This Data Suggest About MS Group Holdings Insiders?
An insider sold MS Group Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, MS Group Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. You'd be interested to know, that we found 2 warning signs for MS Group Holdings and we suggest you have a look.
But note: MS Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.