Chong Li Is The Co-Founder of BAIOO Family Interactive Limited (HKG:2100) And They Just Sold 44% Of Their Shares

Some BAIOO Family Interactive Limited (HKG:2100) shareholders may be a little concerned to see that the Co-Founder, Chong Li, recently sold a substantial HK$97m worth of stock at a price of HK$1.10 per share. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.

View our latest analysis for BAIOO Family Interactive

The Last 12 Months Of Insider Transactions At BAIOO Family Interactive

Notably, that recent sale by Chong Li is the biggest insider sale of BAIOO Family Interactive shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$1.75). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 44%of Chong Li's holding.

BAIOO Family Interactive insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like BAIOO Family Interactive better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of BAIOO Family Interactive

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that BAIOO Family Interactive insiders own 56% of the company, worth about HK$3.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At BAIOO Family Interactive Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, BAIOO Family Interactive makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BAIOO Family Interactive. You'd be interested to know, that we found 3 warning signs for BAIOO Family Interactive and we suggest you have a look.

Of course BAIOO Family Interactive 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. 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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