Selling HK$61m Of MS Group Holdings Stock Rewarded Insiders

While it’s been a great week for MS Group Holdings Limited (HKG:1451) shareholders after stock gained 30%, they should consider it with a grain of salt. Although prices were relatively low, insiders chose to sell HK$61m worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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MS Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Kwok-Keung Chung for HK$60m worth of shares, at about HK$0.80 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.60. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In total, MS 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for MS Group Holdings

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MS Group Holdings insiders own about HK$238m worth of shares (which is 73% 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 Do The MS Group Holdings Insider Transactions Indicate?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of MS Group Holdings insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MS Group Holdings. You'd be interested to know, that we found 4 warning signs for MS Group Holdings and we suggest you have a look.

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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.