Non-Executive Director of Beijing Sports and Entertainment Industry Group Picks Up 21% More Stock \

Those following along with Beijing Sports and Entertainment Industry Group Limited (HKG:1803) will no doubt be intrigued by the recent purchase of shares by Yebi Hu, Non-Executive Director of the company, who spent a stonking HK$5.8m on stock at an average price of HK$0.13. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 21%.

View our latest analysis for Beijing Sports and Entertainment Industry Group

The Last 12 Months Of Insider Transactions At Beijing Sports and Entertainment Industry Group

Notably, that recent purchase by Yebi Hu is the biggest insider purchase of Beijing Sports and Entertainment Industry Group shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.16. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Yebi Hu bought a total of 62.23m 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!

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.

Does Beijing Sports and Entertainment Industry Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 29% of Beijing Sports and Entertainment Industry Group shares, worth about HK$66m. 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 is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Beijing Sports and Entertainment Industry Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Beijing Sports and Entertainment Industry Group (of which 2 are potentially serious!) you should know about.

Of course Beijing Sports and Entertainment Industry Group 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, but not derivative transactions.

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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.