Anyone interested in Golden Matrix Group, Inc. (NASDAQ:GMGI) should probably be aware that the COO & Director, Weiting Feng, recently divested US$200k worth of shares in the company, at an average price of US$4.30 each. On the bright side, that sale was only 1.6% of their holding, so we doubt it's very meaningful, on its own.
Golden Matrix Group Insider Transactions Over The Last Year
Notably, that recent sale by Weiting Feng is the biggest insider sale of Golden Matrix Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.87. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 1.6%of Weiting Feng's holding.
Weiting Feng sold a total of 62.18k shares over the year at an average price of US$4.22. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Golden Matrix Group
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Golden Matrix Group insiders own 79% of the company, currently worth about US$465m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Golden Matrix Group Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 Golden Matrix Group (of which 2 are potentially serious!) you should know about.
But note: Golden Matrix Group 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 of direct interests only, but not derivative transactions or indirect interests.
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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.