Insiders In Meta Media Holdings Left Out From 14% Price Rise After Disposing Stock

While Meta Media Holdings Limited (HKG:72) shareholders have enjoyed a good week with stock up 14%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell CN¥1.4m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Meta Media Holdings

Meta Media Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Zhong Shao, for HK$1.4m worth of shares, at about HK$0.76 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.23. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Zhong Shao.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Meta Media 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.

Does Meta Media Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Meta Media Holdings insiders own 76% of the company, worth about HK$76m. 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 Meta Media Holdings Insiders?

The fact that there have been no Meta Media Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Meta Media Holdings, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Meta Media Holdings is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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