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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Beaver Group (Holding) Company Limited (HKG:8275).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Beaver Group (Holding)
The Last 12 Months Of Insider Transactions At Beaver Group (Holding)
In the last twelve months, the biggest single sale by an insider was when the Executive Director, Koon Yau Chui, sold HK$14m worth of shares at a price of HK$0.33 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.09. So it is hard to draw any strong conclusion from it.
In total, Beaver Group (Holding) insiders sold more than they bought over the last year. 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!
I will like Beaver Group (Holding) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Beaver Group (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. We usually like to see fairly high levels of insider ownership. Beaver Group (Holding) insiders own 63% of the company, currently worth about HK$35m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Beaver Group (Holding) Insider Transactions Indicate?
The fact that there have been no Beaver Group (Holding) insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Beaver Group (Holding) insiders selling. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .