Have Insiders Been Buying Macau Property Opportunities Fund Limited (LON:MPO) Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Macau Property Opportunities Fund Limited (LON:MPO), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Macau Property Opportunities Fund

Macau Property Opportunities Fund Insider Transactions Over The Last Year

The Independent Chairman of the Board Mark Huntley made the biggest insider purchase in the last 12 months. That single transaction was for UK£113k worth of shares at a price of UK£0.56 each. That means that an insider was happy to buy shares at around the current price of UK£0.68. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Macau Property Opportunities Fund insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Mark Huntley.

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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Macau Property Opportunities Fund

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that Macau Property Opportunities Fund insiders own about UK£196k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Macau Property Opportunities Fund Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Macau Property Opportunities Fund insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Macau Property Opportunities Fund. When we did our research, we found 2 warning signs for Macau Property Opportunities Fund (1 doesn't sit too well with us!) that we believe deserve your full attention.

But note: Macau Property Opportunities Fund may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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