Mercurity Fintech Holding Insider Lowered Holding By 61% During Last Year

Viewing insider transactions for Mercurity Fintech Holding Inc.'s (NASDAQ:MFH ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Mercurity Fintech Holding

The Last 12 Months Of Insider Transactions At Mercurity Fintech Holding

The insider, Hanqi Li, made the biggest insider sale in the last 12 months. That single transaction was for US$9.5m worth of shares at a price of US$0.90 each. So what is clear is that an insider saw fit to sell at around the current price of US$0.89. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Hanqi Li was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 9.21m shares for US$7.6m. But they sold 11.49m shares for US$9.5m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Mercurity Fintech Holding Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Mercurity Fintech Holding insiders own 43% of the company, worth about US$18m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Mercurity Fintech Holding Tell Us?

It doesn't really mean much that no insider has traded Mercurity Fintech Holding shares in the last quarter. While we feel good about high insider ownership of Mercurity Fintech Holding, we can't say the same about the selling of shares. 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. Be aware that Mercurity Fintech Holding is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

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.