We wouldn't blame MTT Group Holdings Limited (HKG:2350) shareholders if they were a little worried about the fact that Ka Wai Ip, the Executive Chairman of the Board & CEO recently netted about HK$5.0m selling shares at an average price of HK$0.51. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.
MTT Group Holdings Insider Transactions Over The Last Year
In fact, the recent sale by Executive Chairman of the Board & CEO Ka Wai Ip was not their only sale of MTT Group Holdings shares this year. Earlier in the year, they fetched HK$0.68 per share in a -HK$17m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.51. So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in MTT Group Holdings than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of MTT Group Holdings
For a common shareholder, it is worth checking how many shares are held by company 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. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 it's good to be aware of 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 help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in MTT Group Holdings.
But note: MTT 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.
