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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Huanxi Media Group Limited (HKG:1003), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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Huanxi Media Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman Ping Dong bought HK$6.4m worth of shares at a price of HK$1.75 per share. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 27.68m shares worth HK$50m. In the last twelve months there was more buying than selling by Huanxi Media Group insiders. They paid about HK$1.81 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is HK$1.74. You can see the insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Huanxi Media Group Insiders Bought Stock Recently
It’s good to see that Huanxi Media Group insiders have made notable investments in the company’s shares. Ping Dong spent HK$8.9m on stock, and there wasn’t any selling. This makes one think the business has some good points.