Looking at Melco International Development Limited's (HKG:200 ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Melco International Development Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Non-executive Director, Che Yin Tsui, sold HK$2.2m worth of shares at a price of HK$6.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$5.43). So it may not tell us anything about how insiders feel about the current share price. Che Yin Tsui was the only individual insider to sell over the last year.

Che Yin Tsui divested 1.00m shares over the last 12 months at an average price of HK$6.18. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Melco International Development better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Melco International Development Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Melco International Development insiders own 52% of the company, worth about HK$4.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Melco International Development Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Melco International Development shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Melco International Development insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Melco International Development.

Of course Melco International Development may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.