Insiders In Beijing Sports and Entertainment Industry Group Still Down 18% On HK$6.45m Investment

Insiders who purchased HK$6.45m worth of Beijing Sports and Entertainment Industry Group Limited (HKG:1803) shares over the past year recouped some of their losses after price gained 14% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled HK$1.2m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Beijing Sports and Entertainment Industry Group

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

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Yebi Hu bought HK$5.8m worth of shares at a price of HK$0.13 per share. That means that an insider was happy to buy shares at above the current price of HK$0.11. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yebi Hu was the only individual insider to buy shares in the last twelve months.

Yebi Hu bought a total of 49.00m shares over the year at an average price of HK$0.13. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Beijing Sports and Entertainment Industry Group is not the only stock that insiders are buying. 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 Beijing Sports and Entertainment Industry Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Beijing Sports and Entertainment Industry Group insiders own 33% of the company, worth about HK$50m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

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

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Beijing Sports and Entertainment Industry Group and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Beijing Sports and Entertainment Industry Group (including 2 which don't sit too well with us).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.