Selling Metalpha Technology Holding Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Metalpha Technology Holding Limited's (NASDAQ:MATH) stock price has dropped 12% in the previous week, but insiders who sold US$900k in stock over the past year have had less luck. Given that the average selling price of US$1.50 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

View our latest analysis for Metalpha Technology Holding

Metalpha Technology Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the COO & Director, Ming Ni, sold US$900k worth of shares at a price of US$1.50 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.21). So it may not tell us anything about how insiders feel about the current share price. Ming Ni was the only individual insider to sell shares in the last twelve months.

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!

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).

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. Insiders own 14% of Metalpha Technology Holding shares, worth about US$6.2m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Metalpha Technology Holding Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Metalpha Technology Holding shares in the last quarter. Our analysis of Metalpha Technology Holding insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Metalpha Technology Holding. For instance, we've identified 4 warning signs for Metalpha Technology Holding (1 is a bit unpleasant) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com