Anyone interested in Millennium Pacific Group Holdings Limited (HKG:8147) should probably be aware that a company insider, Lu Yajing, recently divested HK$2.3m worth of shares in the company, at an average price of HK$0.042 each. In particular, we note that the sale equated to a 52% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Millennium Pacific Group Holdings

Millennium Pacific Group Holdings Insider Transactions Over The Last Year

Notably, that recent sale by insider Lu Yajing was not the only time they traded Millennium Pacific Group Holdings shares this year. Earlier in the year, they spent HK$4.0m to buy shares at HK$0.039 per share. That means that even when the share price was higher than HK$0.037 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Lu Yajing was also the biggest seller.

In the last twelve months insiders purchased 113.23m shares for HK$4.4m. But they sold 114.54m shares for HK$4.3m. In total, Millennium Pacific Group Holdings insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Millennium Pacific Group Holdings

For a common shareholder, it is worth checking how many shares are held by company 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 Millennium Pacific Group Holdings insiders own 68% of the company, worth about HK$26m. 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 Millennium Pacific Group Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Millennium Pacific Group Holdings. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Millennium Pacific Group Holdings.

But note: Millennium Pacific Group Holdings 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.

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, but not derivative transactions.

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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.