Some Mewah International Inc. (SGX:MV4) shareholders may be a little concerned to see that insider Seng Cheo recently sold a substantial S$8.3m worth of stock at a price of S$0.42 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.
See our latest analysis for Mewah International
The Last 12 Months Of Insider Transactions At Mewah International
In fact, the recent sale by Seng Cheo was the biggest sale of Mewah International 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$0.30). So it is hard to draw any strong conclusion from it.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Mewah International
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mewah International insiders own about S$101m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Mewah International Tell Us?
An insider sold Mewah International shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Mewah International is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Mewah International is showing 4 warning signs in our investment analysis, and 2 of those are concerning...
Of course Mewah International 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, 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.