Insiders who bought this year lost HK $ 253,000 as Beijing Sports and Entertainment Industry Group Limited (HKG: 1803) lost value of HK $ 32 million

The recent 11% drop in Beijing Sports and Entertainment Industry Group Limited (HKG: 1803) could be a blow to insiders who bought HK $ 1.5 million worth of shares at an average purchase price of HK $ 0.22 over the past 12 months. This is not good, as insiders invest based on the expectation that their money will appreciate over time. However, due to recent losses, their initial investment is now worth only HK $ 1.3 million.

While insider trading isn’t the most important thing when it comes to investing for the long term, logic dictates that you pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Beijing Sports and Entertainment Industry Group

The Last 12 Months of Insider Trading at Beijing Sports and Entertainment Industry Group

The biggest insider buy in the past twelve months was when non-executive director Yebi Hu bought HK $ 412,000 of shares at a price of HK $ 0.20 per share. This means that even when the share price was above HK $ 0.18 (the recent price), an insider wanted to buy shares. Their perspective may have changed since, but it at least shows that they were feeling optimistic at the time. We always take careful note of the price insiders pay when they buy stocks. Typically, we are more bullish on a stock when an insider has bought a stock at a higher price than the current price, as this suggests that he or she viewed the stock as good value, even at a low price. higher price. Yebi Hu was the only individual insider to buy shares in the past twelve months.

Yebi Hu bought 7.02 million shares in the past 12 months at an average price of HK $ 0.22. The chart below shows insider trading (by businesses and individuals) over the past year. By clicking on the graph below, you can see the exact detail of each insider trade!

SEHK: 1,803 Insider Trading Volume 23 November 2021

The Beijing Sports and Entertainment Industry Group isn’t the only title that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.

Insider Ownership of Beijing Sports and Entertainment Industry Group

Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. It appears that insiders from the Beijing Sports and Entertainment Industry Group own 28% of the company, worth around HK $ 71 million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.

What might Beijing’s sports and entertainment industry group’s insider trading tell us?

There haven’t been any insider trading in the past three months, that doesn’t mean much. However, our analysis of transactions over the past year is encouraging. Insiders own shares in the Beijing Sports and Entertainment Industry Group and we see no evidence to suggest that they are worried about the future. In addition to knowing the current insider transactions, it is useful to identify the risks facing the Beijing Sports and Entertainment Industry Group. For example, the Beijing Sports and Entertainment Industry Group has 3 warning signs we think you should be aware.

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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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