Insiders Of Ourgame International Holdings Retain CN¥14m Of Investment Selling At Higher Prices

Ourgame International Holdings Limited's (HKG:6899) stock rose 17% last week, but insiders who sold CN¥14m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of CN¥0.18, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Ourgame International Holdings

The Last 12 Months Of Insider Transactions At Ourgame International Holdings

The insider, Yangyang Li, made the biggest insider sale in the last 12 months. That single transaction was for HK$14m worth of shares at a price of HK$0.18 each. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$0.21. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 27% of Yangyang Li's stake. Yangyang Li was the only individual insider to sell over the last year.

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!

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

Insiders At Ourgame International Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Ourgame International Holdings. In total, insider Yangyang Li dumped HK$14m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Ourgame International Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ourgame International Holdings insiders own about HK$51m worth of shares. That equates to 23% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ourgame International Holdings Tell Us?

An insider sold Ourgame International Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Ourgame International Holdings you should be aware of.

But note: Ourgame International Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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