Some MTT Group Holdings Limited (HKG:2350) shareholders may be a little concerned to see that the Executive Chairman of the Board & CEO, Ka Wai Ip, recently sold a substantial HK$17m worth of stock at a price of HK$0.68 per share. However, that sale only accounted for 6.0% 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 Ka Wai Ip was the biggest sale of MTT Group Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of HK$0.62. While insider selling is a negative, to us, it is more negative if the shares are sold 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, MTT Group Holdings insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of MTT Group Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. MTT Group Holdings insiders own about HK$279m worth of shares (which is 72% of the company). 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 Does This Data Suggest About MTT Group Holdings Insiders?
An insider sold MTT Group Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MTT Group Holdings. At Simply Wall St, we've found that MTT Group Holdings has 4 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
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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.