We'd be surprised if Golden Matrix Group, Inc. (NASDAQ:GMGI) shareholders haven't noticed that the COO & Director, Weiting Feng, recently sold US$439k worth of stock at US$4.39 per share. On the bright side, that sale was only 3.6% of their holding, so we doubt it's very meaningful, on its own.

Golden Matrix Group Insider Transactions Over The Last Year

Notably, that recent sale by Weiting Feng is the biggest insider sale of Golden Matrix Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$5.37). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 3.6% of Weiting Feng's holding.

Weiting Feng divested 162.18k shares over the last 12 months at an average price of US$4.33. 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!

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Does Golden Matrix Group 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. Golden Matrix Group insiders own 79% of the company, currently worth about US$462m 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.

What Might The Insider Transactions At Golden Matrix Group Tell Us?

An insider sold Golden Matrix Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Golden Matrix Group (including 2 which can't be ignored).

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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.