Metasurface Technologies Holdings Insiders Selling S$19m In Stock Relieved As Market Cap Slides To HK$540m

Insiders seem to have made the most of their holdings by selling S$19m worth of Metasurface Technologies Holdings Limited (HKG:8637) stock at an average sell price of S$1.54 during the past year. The company's market valuation decreased by HK$63m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.

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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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$3.60). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 shares in the last twelve months.

Chong Kim Thng divested 12.30m shares over the last 12 months at an average price of S$1.54. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Metasurface Technologies Holdings

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Insider Ownership Of Metasurface Technologies Holdings

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Metasurface Technologies Holdings insiders own about HK$305m worth of shares (which is 56% 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.

So What Does This Data Suggest About Metasurface Technologies Holdings Insiders?

It doesn't really mean much that no insider has traded Metasurface Technologies Holdings shares in the last quarter. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Metasurface Technologies Holdings. In terms of investment risks, we've identified 3 warning signs with Metasurface Technologies Holdings and understanding them should be part of your investment process.

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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.