From what we can see, insiders were net sellers in Galaxy Entertainment Group Limited's (HKG:27 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Galaxy Entertainment Group Insider Transactions Over The Last Year

The Independent Non-Executive Director, Michael Victor Mecca, made the biggest insider sale in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$33.60 each. That means that even when the share price was below the current price of HK$38.60, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 100% of Michael Victor Mecca's holding. The only individual insider seller over the last year was Michael Victor Mecca.

Michael Victor Mecca ditched 1.28m shares over the year. The average price per share was HK$33.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Galaxy Entertainment Group

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Insiders At Galaxy Entertainment Group Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Galaxy Entertainment Group. Specifically, Independent Non-Executive Director Michael Victor Mecca ditched HK$19m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Galaxy Entertainment Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Galaxy Entertainment Group insiders own 5.2% of the company, worth about HK$8.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Galaxy Entertainment Group Insiders?

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. But it is good to see that Galaxy Entertainment Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Galaxy Entertainment Group has 1 warning sign we think you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.