In This Article:
Whilst it may not be a huge deal, we thought it was good to see that the Mei Ah Entertainment Group Limited (HKG:391) Founder & Chairman, Kuo Hsing Li, recently bought HK$355k worth of stock, for HK$0.11 per share. Nevertheless, it only increased shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for Mei Ah Entertainment Group
The Last 12 Months Of Insider Transactions At Mei Ah Entertainment Group
Notably, that recent purchase by Kuo Hsing Li is the biggest insider purchase of Mei Ah Entertainment Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$0.11. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Kuo Hsing Li.
Kuo Hsing Li bought a total of 31.32m shares over the year at an average price of HK$0.15. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Mei Ah Entertainment Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Mei Ah Entertainment Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Mei Ah Entertainment Group insiders own 64% of the company, worth about HK$419m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Mei Ah Entertainment Group Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mei Ah Entertainment Group insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. To help with this, we've discovered 5 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Mei Ah Entertainment Group.