We'd be surprised if Magic Empire Global Limited (NASDAQ:MEGL) shareholders haven't noticed that the CEO & Director, Sze Chen, recently sold US$200k worth of stock at US$1.02 per share. However, the silver lining is that the sale only reduced their total holding by 3.9%, so we're hesitant to read anything much into it, on its own.
See our latest analysis for Magic Empire Global
Magic Empire Global Insider Transactions Over The Last Year
In fact, the recent sale by CEO & Director Sze Chen was not their only sale of Magic Empire Global shares this year. Earlier in the year, they fetched US$2.04 per share in a -US$374k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$0.93). So it may not shed much light on insider confidence at current levels.
In the last year Magic Empire Global insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqCM:MEGL Insider Trading Volume October 23rd 2023
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Magic Empire Global Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Magic Empire Global insiders own 58% of the company, worth about US$11m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Magic Empire Global Tell Us?
Insiders haven't bought Magic Empire Global stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Magic Empire Global (of which 1 is a bit unpleasant!) you should know about.
Of course Magic Empire Global 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.
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