Wynn Macau Insider Lowered Holding By 22% During Last Year

Looking at Wynn Macau, Limited's (HKG:1128 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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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Wynn Macau Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the COO & Executive Director, Jean-Luc Luvisutto, for HK$11m worth of shares, at about HK$5.42 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$6.80. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 22% of Jean-Luc Luvisutto's holding. Jean-Luc Luvisutto was the only individual insider to sell shares in the last twelve months.

Jean-Luc Luvisutto ditched 3.75m shares over the year. The average price per share was HK$5.70. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Wynn Macau

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Insider Ownership Of Wynn Macau

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Wynn Macau shares, worth about HK$54m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Wynn Macau Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Wynn Macau shares in the last quarter. Still, the insider transactions at Wynn Macau in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with Wynn Macau (including 2 which shouldn't be ignored).

But note: Wynn Macau 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 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.