A HK$912m Market Cap Boost Pleasing ToBeisen Holding Insiders

Last week, Beisen Holding Limited (HKG:9669) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 26% last week, resulting in a HK$912m increase in the company's market worth, implying a 71% gain on their initial purchase. As a result, the stock they originally bought for CN¥190.4m is now worth CN¥324.9m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Beisen Holding

The Last 12 Months Of Insider Transactions At Beisen Holding

The insider Hong Jing made the biggest insider purchase in the last 12 months. That single transaction was for HK$129m worth of shares at a price of HK$3.30 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$6.18. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Beisen Holding insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Beisen Holding Insiders Bought Stock Recently

It's good to see that Beisen Holding insiders have made notable investments in the company's shares. Specifically, insider Hong Jing bought HK$48m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Beisen Holding Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Beisen Holding insiders own about HK$1.4b worth of shares (which is 31% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Beisen Holding Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Beisen Holding. One for the watchlist, at least! 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. Case in point: We've spotted 1 warning sign for Beisen Holding you should be aware of.

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 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.