Whilst it may not be a huge deal, we thought it was good to see that the Beijing Sports and Entertainment Industry Group Limited (HKG:1803) Non-Executive Director, Yebi Hu, recently bought HK$72k worth of stock, for HK$0.20 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Beijing Sports and Entertainment Industry Group Insider Transactions Over The Last Year
Non-Executive Director Yebi Hu previously made an even bigger purchase of HK$412k worth of shares at a price of HK$0.20 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.20. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Beijing Sports and Entertainment Industry Group share holders is that an insider was buying at near the current price. Yebi Hu was the only individual insider to buy shares in the last twelve months.
Yebi Hu purchased 7.38m shares over the year. The average price per share was HK$0.22. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Beijing Sports and Entertainment Industry Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Beijing Sports and Entertainment Industry Group insiders own 28% of the company, worth about HK$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Beijing Sports and Entertainment Industry Group Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. 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 while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Beijing Sports and Entertainment Industry Group you should be aware of.
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.
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