Don't Ignore The Fact That This Insider Just Sold Some Shares In Galaxy Entertainment Group Limited (HKG:27)

We wouldn't blame Galaxy Entertainment Group Limited (HKG:27) shareholders if they were a little worried about the fact that Ying Keung Chee, the MD of the Construction Materials Division recently netted about HK$14m selling shares at an average price of HK$72.39. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

Check out our latest analysis for Galaxy Entertainment Group

The Last 12 Months Of Insider Transactions At Galaxy Entertainment Group

In fact, the recent sale by Ying Keung Chee was the biggest sale of Galaxy Entertainment Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of HK$72.90. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 just 21% of Ying Keung Chee's stake.

Ying Keung Chee divested 825.00k shares over the last 12 months at an average price of HK$61.57. 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!

I will like Galaxy Entertainment Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Galaxy Entertainment Group insiders own about HK$29b worth of shares (which is 9.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Galaxy Entertainment Group Tell Us?

An insider sold Galaxy Entertainment Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galaxy Entertainment Group. Every company has risks, and we've spotted 1 warning sign for Galaxy Entertainment Group you should know about.

But note: Galaxy Entertainment Group 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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