Insider Sellers Might Regret Selling ESGL Holdings Shares at a Lower Price Than Current Market Value

Despite the fact that ESGL Holdings Limited's (NASDAQ:ESGL) value has dropped 13% in the last week insiders who sold US$2.1m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.88 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for ESGL Holdings

The Last 12 Months Of Insider Transactions At ESGL Holdings

Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Leng Chuang Quek, for US$2.1m worth of shares, at about US$1.88 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1.23. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Leng Chuang Quek.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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).

Does ESGL Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. ESGL Holdings insiders own 81% of the company, currently worth about US$23m 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 Do The ESGL Holdings Insider Transactions Indicate?

The fact that there have been no ESGL Holdings insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the ESGL Holdings insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ESGL Holdings. To help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in ESGL Holdings.

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.