This Insider Has Just Sold Shares In MEIGU Technology Holding Group Limited (HKG:8349)

We wouldn't blame MEIGU Technology Holding Group Limited (HKG:8349) shareholders if they were a little worried about the fact that Guitang Jiang, the CEO & Executive Director recently netted about HK$6.4m selling shares at an average price of HK$0.16. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for MEIGU Technology Holding Group

MEIGU Technology Holding Group Insider Transactions Over The Last Year

In fact, the recent sale by Guitang Jiang was the biggest sale of MEIGU Technology Holding 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$0.56, 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. This single sale was just 24% of Guitang Jiang's stake.

In the last year MEIGU Technology Holding Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like MEIGU Technology Holding 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 of MEIGU Technology Holding Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MEIGU Technology Holding Group insiders own 57% of the company, currently worth about HK$127m based on the recent share price. 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 Does This Data Suggest About MEIGU Technology Holding Group Insiders?

An insider sold MEIGU Technology Holding Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, MEIGU Technology Holding Group makes money, and is growing profits. 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. While we like knowing 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. Case in point: We've spotted 3 warning signs for MEIGU Technology Holding Group 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, 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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