Insiders At Baijiayun Group See Good Returns After Buying Stock Worth US$1.00m

Insiders who purchased Baijiayun Group Ltd (NASDAQ:RTC) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. After taking the recent loss into consideration, the US$1.00m worth of stock they bought is now worth US$1.45m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Baijiayun Group

The Last 12 Months Of Insider Transactions At Baijiayun Group

Over the last year, we can see that the biggest insider purchase was by insider Gangjiang Li for US$505k worth of shares, at about US$4.31 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.37. 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.

Gangjiang Li bought a total of 197.00k shares over the year at an average price of US$5.08. 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!

Baijiayun Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 37% of Baijiayun Group shares, worth about US$61m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Baijiayun Group Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Baijiayun Group insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. At Simply Wall St, we've found that Baijiayun Group has 3 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course Baijiayun Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.