A Metaverse Up 22%, Insiders Still In The Red By CN¥986k

Insiders who purchased CN¥5.10m worth of A Metaverse Company (HKG:1616) shares over the past year recouped some of their losses after price gained 22% last week. However, total losses seen by insiders are still CN¥986k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for A Metaverse

A Metaverse Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Zhihua Liu bought HK$5.0m worth of shares at a price of HK$0.027 per share. That means that an insider was happy to buy shares at above the current price of HK$0.022. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 187.01m shares for HK$5.1m. But insiders sold 23.12m shares worth HK$740k. Overall, A Metaverse insiders were net buyers during the last year. The chart below shows insider transactions (by companies and 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!

A Metaverse is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At A Metaverse Have Sold Stock Recently

The last quarter saw substantial insider selling of A Metaverse shares. In total, insider Jian Wang dumped HK$740k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

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. It's great to see that A Metaverse insiders own 51% of the company, worth about HK$24m. 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 A Metaverse Insiders?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. 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. At Simply Wall St, we've found that A Metaverse has 4 warning signs (3 don't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course A Metaverse may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.