Insider Buying: Kin Hang Ko Just Spent HK$204k On Bingo Group Holdings Limited (HKG:8220) Shares

Whilst it may not be a huge deal, we thought it was good to see that Kin Hang Ko, who is a company insider, recently bought HK$204k worth of stock, for HK$0.096 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Bingo Group Holdings

Bingo Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Kin Hang Ko was the biggest purchase of Bingo Group Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.09). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kin Hang Ko was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Bingo Group 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.

Insider Ownership of Bingo Group Holdings

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. Bingo Group Holdings insiders own about HK$43m worth of shares (which is 55% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Bingo Group Holdings Insiders?

It is good 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Bingo Group Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Bingo Group Holdings is showing 4 warning signs in our investment analysis, and 2 of those are potentially serious...

But note: Bingo Group 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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