Have Insiders Been Selling Galaxy Entertainment Group Limited (HKG:27) Shares This Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Galaxy Entertainment Group Limited (HKG:27).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'

View our latest analysis for Galaxy Entertainment Group

Galaxy Entertainment Group Insider Transactions Over The Last Year

The Non-Executive Director, Michael Mecca, made the biggest insider sale in the last 12 months. That single transaction was for HK$6.5m worth of shares at a price of HK$65.36 each. So we know that an insider sold shares at around the present share price of HK$58.85. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we note insiders sold 535k shares worth HK$31m. Insiders in Galaxy Entertainment Group didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this freelist of companies. (Hint: insiders have been buying them).

Insiders at Galaxy Entertainment Group Have Sold Stock Recently

The last quarter saw substantial insider selling of Galaxy Entertainment Group shares. Specifically, Michael Mecca ditched HK$5.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Galaxy Entertainment Group Boast High 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 11% 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.

So What Do The Galaxy Entertainment Group Insider Transactions Indicate?

An insider sold Galaxy Entertainment Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Galaxy Entertainment Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for Galaxy Entertainment Group.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.