Phoenix Media Investment (Holdings) Insiders Land Bargain With Gains Of HK$54m

Insiders who bought Phoenix Media Investment (Holdings) Limited (HKG:2008) stock lover the last 12 months are probably not as affected by last week’s 16% loss. After accounting for the recent loss, the HK$24.7m worth of shares they purchased is now worth HK$78.8m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Phoenix Media Investment (Holdings)

The Last 12 Months Of Insider Transactions At Phoenix Media Investment (Holdings)

The insider Yafang Hsieh made the biggest insider purchase in the last 12 months. That single transaction was for HK$25m worth of shares at a price of HK$0.065 each. Even though the purchase was made at a significantly lower price than the recent price (HK$0.21), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Phoenix Media Investment (Holdings) 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.

Does Phoenix Media Investment (Holdings) Boast High Insider Ownership?

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. Phoenix Media Investment (Holdings) insiders own about HK$79m worth of shares. That equates to 7.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Phoenix Media Investment (Holdings) Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Phoenix Media Investment (Holdings) insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 1 warning sign with Phoenix Media Investment (Holdings) and understanding this should be part of your investment process.

Of course Phoenix Media Investment (Holdings) 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 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.