This Marketingforce Management Insider Reduced Their Stake By 12%

Insiders were net sellers of Marketingforce Management Ltd's (HKG:2556 ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Marketingforce Management

Over the last year, we can see that the biggest insider sale was by the insider, Zhengguo Zhu, for HK$149m worth of shares, at about HK$61.80 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$55.00. So it may not tell us anything about how insiders feel about the current share price. Zhengguo Zhu was the only individual insider to sell over the last year.

Zhengguo Zhu divested 3.99m shares over the last 12 months at an average price of CN¥59.73. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Marketingforce Management

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Marketingforce Management Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Marketingforce Management. Specifically, insider Zhengguo Zhu ditched HK$25m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Marketingforce Management Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Marketingforce Management insiders own about HK$8.1b worth of shares (which is 58% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Marketingforce Management Tell Us?

An insider hasn't bought Marketingforce Management stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Marketingforce Management has 1 warning sign and it would be unwise to ignore it.

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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.