Some ESGL Holdings Limited (NASDAQ:ESGL) shareholders may be a little concerned to see that the Chairman & CEO, Leng Chuang Quek, recently sold a substantial US$2.1m worth of stock at a price of US$1.88 per share. That sale reduced their total holding by 28% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At ESGL Holdings

Notably, that recent sale by Leng Chuang Quek is the biggest insider sale of ESGL Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$2.02). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 28% of Leng Chuang Quek's stake.

Happily, we note that in the last year insiders paid US$154k for 391.35k shares. But insiders sold 1.13m shares worth US$2.1m. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does ESGL Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. ESGL Holdings insiders own 73% of the company, currently worth about US$35m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The ESGL Holdings Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at ESGL Holdings, in the last three months. 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. To help with this, we've discovered 5 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in ESGL Holdings.

But note: ESGL 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.