Even if it's not a huge purchase, we think it was good to see that Kuo Hsing Li, the Founder & Chairman of Mei Ah Entertainment Group Limited (HKG:391) recently shelled out HK$56k to buy stock, at HK$0.11 per share.    Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.    

Check out our latest analysis for Mei Ah Entertainment Group

Mei Ah Entertainment Group Insider Transactions Over The Last Year

Earlier in the year, Founder & Chairman Kuo Hsing Li paid HK$0.093 per share in a HK$148k purchase.    We do like to see buying, but this purchase was made at well below the current price of HK$0.11.  While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.  

Kuo Hsing Li bought 17.66m shares over the last 12 months at an average price of HK$0.096.   You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below.  By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:391 Insider Trading Volume February 21st 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Mei Ah Entertainment Group Boast High 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.   Mei Ah Entertainment Group insiders own 66% of the company, currently worth about HK$434m based on the recent share price.  I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.  

What Might The Insider Transactions At Mei Ah Entertainment Group Tell Us?

It's certainly positive to see the recent insider purchase.    And an analysis of the transactions over the last year also gives us confidence.   However, we note that the company didn't make a profit over the last twelve months, which makes us cautious.     Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mei Ah Entertainment Group.  Looks promising!      While we like knowing 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.     Case in point: We've spotted 2 warning signs for Mei Ah Entertainment Group you should be aware of.  

But note: Mei Ah Entertainment 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, but not derivative transactions.