Bullish Stream Ideas Group Insiders Loaded Up On HK$6.49m Of Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Stream Ideas Group Limited's (HKG:8401) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Stream Ideas Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Wenzhen Ru for HK$3.6m worth of shares, at about HK$0.15 per share. That means that even when the share price was higher than HK$0.10 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Stream Ideas Group insiders bought shares during the last year, they didn't sell. Their average price was about HK$0.11. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Stream Ideas Group

Stream Ideas Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Stream Ideas Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Stream Ideas Group. We can see that insider Yik Ki Yip paid HK$2.9m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

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. Our data indicates that Stream Ideas Group insiders own about HK$3.8m worth of shares (which is 5.6% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The Stream Ideas Group Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Stream Ideas Group stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Stream Ideas Group has 5 warning signs (3 are concerning!) that deserve your attention before going any further with your analysis.

But note: Stream Ideas Group 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 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.