Sean Ma of MGM China Holdings Limited (HKG:2282) Just Spent HK$128m On Shares

MGM China Holdings Limited (HKG:2282) shareholders (or potential shareholders) will be happy to see that insider Sean Ma recently bought a whopping HK$128m worth of stock, at a price of HK$9.99. While that only increased their holding size by 5.9%, it is still a big swing by our standards.

Check out our latest analysis for MGM China Holdings

MGM China Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Sean Ma was the biggest purchase of MGM China Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$10.08. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the MGM China Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Sean Ma.

Sean Ma bought a total of 15.43m shares over the year at an average price of HK$10.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. MGM China Holdings insiders own about HK$10b worth of shares (which is 27% 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.

What Might The Insider Transactions At MGM China Holdings Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MGM China Holdings. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with MGM China Holdings and understanding this should be part of your investment process.

But note: MGM China Holdings 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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