Wai Meng Tang of Beijing Enterprises Urban Resources Group Limited (HKG:3718) Just Spent HK$14m On Shares

Those following along with Beijing Enterprises Urban Resources Group Limited (HKG:3718) will no doubt be intrigued by the recent purchase of shares by insider Wai Meng Tang, who spent a stonking HK$14m on stock at an average price of HK$2.11. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.9%.

View our latest analysis for Beijing Enterprises Urban Resources Group

The Last 12 Months Of Insider Transactions At Beijing Enterprises Urban Resources Group

The insider, Tat Joel Chang, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.1b worth of shares at a price of HK$1.52 each. That means that an insider was selling shares at slightly below the current price (HK$2.04). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was 83% of Tat Joel Chang's holding.

In the last twelve months insiders purchased 263.88m shares for HK$492m. But insiders sold 835.28m shares worth HK$1.3b. In total, Beijing Enterprises Urban Resources Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Beijing Enterprises Urban Resources Group insiders own 24% of the company, currently worth about HK$1.7b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Beijing Enterprises Urban Resources Group Insiders?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Beijing Enterprises Urban Resources Group that deserve your attention before buying any shares.

But note: Beijing Enterprises Urban Resources 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, but not derivative transactions.

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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. 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.
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