Possible Signal As Golden Matrix Group Insiders Sell US$702k In Stock

Golden Matrix Group, Inc.'s (NASDAQ:GMGI) stock rose 11% last week, but insiders who sold US$702k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$4.33, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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

Check out our latest analysis for Golden Matrix Group

Golden Matrix Group Insider Transactions Over The Last Year

The COO & Director, Weiting Feng, made the biggest insider sale in the last 12 months. That single transaction was for US$439k worth of shares at a price of US$4.39 each. 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$2.41). So it is hard to draw any strong conclusion from it. Weiting Feng was the only individual insider to sell over the last year.

Weiting Feng divested 162.18k shares over the last 12 months at an average price of US$4.33. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Golden Matrix Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Golden Matrix Group Have Sold Stock Recently

The last quarter saw substantial insider selling of Golden Matrix Group shares. In total, COO & Director Weiting Feng sold US$439k 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 Golden Matrix Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Golden Matrix Group insiders own about US$226m worth of shares (which is 78% of the company). 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 Golden Matrix Group Tell Us?

An insider sold Golden Matrix Group 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 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Golden Matrix Group.

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.