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It is not uncommon to see successful companies in the years following the purchase of shares by insiders.
Unfortunately, there are also many examples of a precipitous decline in stock prices after the sale of shares by insiders.
We will therefore examine whether insiders have bought or sold shares in Galaxy Entertainment Group Limited (HKG: 27).
What's an insider?
It is perfectly legal for insiders of the company, including board members, to buy and sell shares of a company.
However, the rules govern insider transactions and certain information is required.
We will never suggest that investors should base their decisions solely on what the directors of a company have done.
But we also consider that it would be foolish to completely ignore insider trading.
As Peter Lynch said, "Insiders can sell their stocks for a number of reasons, but they only buy them for one: they think the price will go up."
See our latest badysis for Galaxy Entertainment Group
Insider Transactions of Galaxy Entertainment Group in the last year
Non-executive director, Michael Mecca, has achieved the largest insider sales in the last 12 months. This single transaction involved shares worth HK $ 6.5 million at HK $ 65.36 each.
So we know that an insider sold shares at roughly the current price of 58.85 Hong Kong dollars.
While we generally do not like insider sales, it is more of a concern that sales take the price at a lower price.
Since the sale took place around current prices, it makes us a bit cautious, but it is not a major concern.
During the past year, we found that insiders had sold 535,000 shares worth HK $ 31 million.
Galaxy Entertainment Group insiders have not purchased any shares in the past year.
The chart below shows insider transactions (by individuals) over the last year.
If you click on the graph, you can see all the individual transactions, including the price of the action, the individual transaction and the date!
If you like to buy stocks that insiders buy rather than sell, you might like that free list of companies. (Hint: insiders bought them)
Galaxy Entertainment Group insiders sold their stock recently
The last quarter was marked by a significant equity sale of Galaxy Entertainment Group shares.
Specifically, Michael Mecca sold $ 5.2 million of stock at that time and we did not register any purchase.
This may suggest that some insiders think that stocks are not cheap.
Does Galaxy Entertainment Group benefit from a strong insider property?
Reviewing total insider holdings in a company can help you determine if they are well aligned with common shareholders.
I think it's a good sign if insiders own a significant number of shares in society.
The Galaxy Entertainment Group insiders hold about HK $ 29 billion of shares (or 11% of the company).
Most shareholders would be happy to see this type of insider property, as this suggests that the incentives of management are well aligned with those of other shareholders.
While say the insider trading of the Galaxy Entertainment Group?
An insider recently sold shares in Galaxy Entertainment Group, but did not buy any.
And no purchase has been comforting in the last year.
But it's good to see that Galaxy Entertainment Group's revenues are increasing.
It is good to notice a strong property of insiders, but the sale of insiders leaves us cautious.
Therefore, you should absolutely have a look at this FREE report showing badysts' forecasts for Galaxy Entertainment Group.
Of course, you could find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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