Need To Know: Starrise Media Holdings Limited (HKG:1616) Insiders Have Been Selling Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Starrise Media Holdings Limited (HKG:1616), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Starrise Media Holdings

Starrise Media Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Peng Jin, for HK$5.5m worth of shares, at about HK$1.10 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.16. So it is hard to draw any strong conclusion from it. Peng Jin was the only individual insider to sell shares in the last twelve months. Notably Peng Jin was also the biggest buyer, having purchased HK$4.0m worth of shares.

Peng Jin divested 30.67m shares over the last 12 months at an average price of CN¥0.85. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Starrise Media Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Starrise Media Holdings insiders own about HK$110m worth of shares (which is 42% of the company). 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 Do The Starrise Media Holdings Insider Transactions Indicate?

The fact that there have been no Starrise Media Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Starrise Media Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Starrise Media Holdings. For example, Starrise Media Holdings has 4 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Starrise Media Holdings 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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