The Chairman of the Board of Huanxi Media Group Limited (HKG:1003), Ping Dong, Just Bought 1.3% More Shares

Those following along with Huanxi Media Group Limited (HKG:1003) will no doubt be intrigued by the recent purchase of shares by Ping Dong, Chairman of the Board of the company, who spent a stonking HK$9.2m on stock at an average price of HK$1.20. 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 1.3%.

View our latest analysis for Huanxi Media Group

Huanxi Media Group Insider Transactions Over The Last Year

In fact, the recent purchase by Ping Dong was the biggest purchase of Huanxi Media Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$1.32 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Ping Dong.

Ping Dong bought 20.02m shares over the last 12 months at an average price of HK$1.31. 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!

Huanxi Media Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Huanxi Media Group insiders own 42% of the company, currently worth about HK$1.9b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Huanxi Media Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huanxi Media Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Huanxi Media Group and we suggest you have a look.

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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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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