Independent Non-Executive Director Of Galaxy Entertainment Group Sold 46% Of Their Shares

Some Galaxy Entertainment Group Limited (HKG:27) shareholders may be a little concerned to see that the Independent Non-Executive Director, Michael Victor Mecca, recently sold a substantial HK$16m worth of stock at a price of HK$31.66 per share. That sale reduced their total holding by 46% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Galaxy Entertainment Group

The Last 12 Months Of Insider Transactions At Galaxy Entertainment Group

In fact, the recent sale by Michael Victor Mecca was the biggest sale of Galaxy Entertainment Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of HK$32.55, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 46% of Michael Victor Mecca's holding.

Michael Victor Mecca divested 700.00k shares over the last 12 months at an average price of HK$33.09. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Galaxy Entertainment Group insiders own 5.0% of the company, currently worth about HK$7.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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. Looking to the last twelve months, our data doesn't show any insider buying. But since Galaxy Entertainment Group is profitable and growing, we're not too worried by this. 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. For example - Galaxy Entertainment Group has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.