Trade Alert: Chairman & CEO Of ESGL Holdings Leng Chuang Quek Has Sold Stock

We wouldn't blame ESGL Holdings Limited (NASDAQ:ESGL) shareholders if they were a little worried about the fact that Leng Chuang Quek, the Chairman & CEO recently netted about US$2.1m selling shares at an average price of US$1.88. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

Check out our latest analysis for ESGL Holdings

The Last 12 Months Of Insider Transactions At ESGL Holdings

Notably, that recent sale by Leng Chuang Quek is the biggest insider sale of ESGL Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$2.02. 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 28% of Leng Chuang Quek's stake.

Happily, we note that in the last year insiders paid US$154k for 391.35k shares. But insiders sold 1.13m shares worth US$2.1m. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ESGL Holdings insiders own 73% of the company, worth about US$35m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At ESGL Holdings Tell Us?

Unfortunately, there has been more insider selling of ESGL Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. 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. 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. For instance, we've identified 5 warning signs for ESGL Holdings (1 is potentially serious) you should be aware of.

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.