Metaspacex Insiders Selling HK$53m In Stock Relieved As Market Cap Slides To HK$283m

Insiders seem to have made the most of their holdings by selling HK$53m worth of Metaspacex Limited (HKG:1796) stock at an average sell price of HK$0.51 during the past year. The company’s market cap plunged by HK$34m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Metaspacex Insider Transactions Over The Last Year

The insider, Hou Huang, made the biggest insider sale in the last 12 months. That single transaction was for HK$38m worth of shares at a price of HK$0.39 each. That means that an insider was selling shares at slightly below the current price (HK$0.59). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 28% of Hou Huang's holding. Hou Huang was the only individual insider to sell over the last year.

Hou Huang divested 104.14m shares over the last 12 months at an average price of HK$0.51. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Metaspacex

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Metaspacex Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Metaspacex. Specifically, insider Hou Huang ditched HK$48m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Metaspacex Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Metaspacex insiders own 53% of the company, currently worth about HK$151m based on the recent share price. 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 Metaspacex Tell Us?

An insider sold Metaspacex shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Metaspacex. At Simply Wall St, we've found that Metaspacex has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.