Insider Buying: The Beijing Sports and Entertainment Industry Group Limited (HKG:1803) Non-Executive Director Just Bought HK$1.4m Worth Of Shares

Investors who take an interest in Beijing Sports and Entertainment Industry Group Limited (HKG:1803) should definitely note that the Non-Executive Director, Yebi Hu, recently paid HK$0.25 per share to buy HK$1.4m worth of the stock. Although the purchase only increased their holding by 3.3%, it is still a solid purchase in our view.

View our latest analysis for Beijing Sports and Entertainment Industry Group

Beijing Sports and Entertainment Industry Group Insider Transactions Over The Last Year

Notably, that recent purchase by Non-Executive Director Yebi Hu was not the only time they bought Beijing Sports and Entertainment Industry Group shares this year. Earlier in the year, they paid HK$1.89 per share in a HK$300m purchase. That means that even when the share price was higher than HK$0.24 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid HK$323m for 182.06m shares. But insiders sold 8435000 shares worth HK$2.6m. Overall, Beijing Sports and Entertainment Industry Group insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:1803 Recent Insider Trading, January 31st 2020
SEHK:1803 Recent Insider Trading, January 31st 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 19% of Beijing Sports and Entertainment Industry Group shares, worth about HK$61m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Beijing Sports and Entertainment Industry Group Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Beijing Sports and Entertainment Industry Group insiders are well aligned, and that they may think the share price is too low. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.