This Insider Has Just Sold Shares In Lajin Entertainment Network Group Limited (HKG:8172)

We wouldn't blame Lajin Entertainment Network Group Limited (HKG:8172) shareholders if they were a little worried about the fact that Nan Yu, a company insider, recently netted about HK$5.1m selling shares at an average price of HK$0.16. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.5%.

View our latest analysis for Lajin Entertainment Network Group

Lajin Entertainment Network Group Insider Transactions Over The Last Year

In fact, the recent sale by Nan Yu was the biggest sale of Lajin Entertainment Network Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$0.13. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Nan Yu ditched 47.00m shares over the year. The average price per share was HK$0.16. 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!

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Insider Ownership

Many investors like to check how much of a company is owned by 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. Lajin Entertainment Network Group insiders own about HK$99m worth of shares. That equates to 17% of the company. 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 Lajin Entertainment Network Group Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Lajin Entertainment Network Group (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

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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