Who Has Been Selling Galaxy Entertainment Group Limited (HKG:27) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Galaxy Entertainment Group Limited (HKG:27).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Galaxy Entertainment Group
The Last 12 Months Of Insider Transactions At Galaxy Entertainment Group
In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Michael Mecca, sold HK$6.5m worth of shares at a price of HK$65.36 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The good news is that this large sale was at well above current price of HK$51.50. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we note insiders sold 493k shares worth HK$28m. Galaxy Entertainment Group insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Galaxy Entertainment Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Galaxy Entertainment Group Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Galaxy Entertainment Group. In total, Michael Mecca dumped HK$5.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership of Galaxy Entertainment Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Galaxy Entertainment Group insiders own 11% of the company, currently worth about HK$27b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Galaxy Entertainment Group Insider Transactions Indicate?
An insider sold Galaxy Entertainment Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Galaxy Entertainment Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Galaxy Entertainment Group.
But note: Galaxy Entertainment Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
