meanwhile Metamedia Holdings Co., Ltd. (HKG:72) Shareholders enjoyed a strong week with the share price up 14%, but they still need to be cautious. Despite the relatively low price, insiders have made the decision to sell CA$1.4m worth of shares in the last twelve months. This can be a warning indicator of future vulnerabilities.
While insider trading is not the most important thing when it comes to long-term investing, we think it’s perfectly logical to monitor insider activity.
Check out our latest analysis for Meta Media Holdings.
Metamedia Holdings Inc. insider transactions over the past year.
We can see that last year, the biggest insider sale was to founder Zhong Shao for HK$1.4m worth of shares (about HK$0.76 per share). We don’t usually like insider selling, but the lower the sales price, the more concerning we become. The good news is that this huge sale was well above his current price of HK$0.23. So we might not be able to tell you anything about how insiders feel about the current share price. Zhong Shao was the only individual insider seller last year.
The chart below depicts insider transactions (by companies and individuals) over the past year. You can click on the graph below to see the exact details of each insider transaction.
I would like Metamedia Holdings even more if we see some major insider buying.While you wait, check this out free A list of growing companies with significant recent insider purchasing.
Does Metamedia Holdings boast high insider ownership?
Another way to test the alignment between a company’s leaders and other shareholders is to look at the number of shares they own. A high insider ownership often makes company leaders more focused on shareholder interests. It’s great to see that Meta Media Holdings insiders own 76% of the company’s shares, worth about HK$76m. Most shareholders would welcome this type of insider ownership because it suggests management incentives are well aligned with other shareholders.
So what does this data suggest about Metamedia Holdings Inc. insiders?
The fact that there have been no recent insider transactions in Metamedia Holdings certainly doesn’t bother us. While we’re happy about the high insider ownership in Metamedia Holdings, we can’t say the same about the sale of shares. So while these insider transactions can help us form a theory about the stock, it’s also worth knowing what risks this company faces. Note that Meta Media Holdings is listed 3 warning signs in investment analysisOne of them doesn’t suit us very well…
of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
Valuation is complex, but we help make it simple.
Check out our comprehensive analysis, including below, to see if Metamedia Holdings is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
