Selling S$19m Of Stock Was Lucrative Decision For Metasurface Technologies Holdings Insiders

While Metasurface Technologies Holdings Limited (HKG:8637) shareholders have enjoyed a good week with stock up 18%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell S$19m worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Metasurface Technologies Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non Executive Director, Chong Kim Thng, for HK$11m worth of shares, at about HK$1.48 per share. That means that an insider was selling shares at slightly below the current price (HK$1.80). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Chong Kim Thng's stake. Chong Kim Thng was the only individual insider to sell over the last year.

Chong Kim Thng ditched 12.30m shares over the year. The average price per share was S$1.54. 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!

View our latest analysis for Metasurface Technologies Holdings

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Does Metasurface Technologies Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Metasurface Technologies Holdings insiders own 58% of the company, worth about HK$157m. 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 Metasurface Technologies Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Metasurface Technologies Holdings insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Metasurface Technologies Holdings you should be aware of.

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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.