Insiders At Globavend Holdings Sold US$3.5m Of Stock Potentially Indicating Weakness
Despite the fact that Globavend Holdings Limited (NASDAQ:GVH) stock rose 28% last week, insiders who sold US$3.5m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$61.16, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Globavend Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Founder & CEO, Wai Yiu Yau, sold US$3.5m worth of shares at a price of US$61.16 per share. 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$1.29). So it is hard to draw any strong conclusion from it. Wai Yiu Yau was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Globavend Holdings
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Have Globavend Holdings Insiders Traded Recently?
We've only seen a tiny insider purchase valued at US$4.2k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Does Globavend Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$85k worth of Globavend Holdings stock, about 1.4% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Globavend Holdings Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. The insider transactions at Globavend Holdings are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Globavend Holdings. Case in point: We've spotted 6 warning signs for Globavend Holdings you should be aware of, and 4 of them are significant.
Of course Globavend Holdings 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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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.