Insiders who bought Beisen Holding Limited (HKG:9669) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$560m as a result of the stock's 16% gain over the same period. Put another way, the original CN¥139.8m acquisition is now worth CN¥237.3m.
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.
Check out our latest analysis for Beisen Holding
The Last 12 Months Of Insider Transactions At Beisen Holding
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. Even though the purchase was made at a significantly lower price than the recent price (HK$5.65), we still think insider buying is a positive. 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. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Beisen Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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. We can see that insider Hong Jing paid HK$140m for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Beisen Holding 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Beisen Holding insiders own 29% of the company, currently worth about HK$1.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Beisen Holding Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Beisen Holding. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beisen Holding. Our analysis shows 2 warning signs for Beisen Holding (1 is significant!) and we strongly recommend you look at these before investing.
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.