Some HG Metal Manufacturing Limited (SGX:BTG) shareholders may be a little concerned to see that insider Joo-Yow Ng recently sold a substantial S$3.3m worth of stock at a price of S$0.69 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
See our latest analysis for HG Metal Manufacturing
The Last 12 Months Of Insider Transactions At HG Metal Manufacturing
In fact, the recent sale by Joo-Yow Ng was the biggest sale of HG Metal Manufacturing shares made by an insider individual in the last twelve months, according to our records. 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 (S$0.36). So it is hard to draw any strong conclusion from it.
Insiders in HG Metal Manufacturing didn't buy any shares in 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!
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Does HG Metal Manufacturing Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of HG Metal Manufacturing shares, worth about S$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The HG Metal Manufacturing Insider Transactions Indicate?
Insiders haven't bought HG Metal Manufacturing stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for HG Metal Manufacturing (1 is a bit unpleasant!) that we believe deserve your full attention.
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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.