Possible Bearish Signals With A Metaverse Insiders Disposing Stock

The fact that multiple A Metaverse Company (HKG:1616) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for A Metaverse

A Metaverse Insider Transactions Over The Last Year

The insider Kin Sun Chan made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.7m worth of shares at a price of HK$0.033 each. So it's clear an insider wanted to buy, at around the current price, which is HK$0.034. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the A Metaverse insider decided to buy shares at close to current prices. Kin Sun Chan was the only individual insider to buy during the last year.

Over the last year we saw more insider selling of A Metaverse shares, than buying. 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 A Metaverse

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. A Metaverse insiders own 51% of the company, currently worth about HK$38m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The A Metaverse Insider Transactions Indicate?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. While we gain confidence from high insider ownership of A Metaverse, we can't say the same about their transactions in the last year, in the absence of further purchases. 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. Case in point: We've spotted 6 warning signs for A Metaverse you should be aware of, and 4 of these don't sit too well with us.

Of course A Metaverse may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.