Beisen Holding Insiders Added CN¥194.6m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Beisen Holding Limited (HKG:9669) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Beisen Holding

Beisen Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Hong Jing bought HK$129m worth of shares at a price of HK$3.30 per share. That implies that an insider found the current price of HK$3.43 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 53.59m shares for HK$195m. On the other hand they divested 9.00k shares, for HK$47k. Overall, Beisen Holding insiders were net buyers during the last year. Their average price was about HK$3.63. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Beisen Holding Insiders Bought Stock Recently

It's good to see that Beisen Holding insiders have made notable investments in the company's shares. In total, insiders bought HK$4.2m worth of shares in that time, and we didn't record any sales whatsoever. 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. We usually like to see fairly high levels of insider ownership. It appears that Beisen Holding insiders own 32% of the company, worth about HK$769m. 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 Beisen Holding Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Beisen Holding.

But note: Beisen Holding 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.