Insider Buying: Mei Ah Entertainment Group Founder & Chairman Bought HK$406k Of Shares
Even if it's not a huge purchase, we think it was good to see that Kuo Hsing Li, the Founder & Chairman of Mei Ah Entertainment Group Limited (HKG:391) recently shelled out HK$406k to buy stock, at HK$0.16 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Mei Ah Entertainment Group
Notably, that recent purchase by Founder & Chairman Kuo Hsing Li was not the only time they bought Mei Ah Entertainment Group shares this year. They previously made an even bigger purchase of HK$461k worth of shares at a price of HK$0.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.16. 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.
Kuo Hsing Li purchased 59.16m shares over the year. The average price per share was HK$0.10. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Mei Ah Entertainment Group
Mei Ah Entertainment Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Mei Ah Entertainment Group
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mei Ah Entertainment Group insiders own 64% of the company, currently worth about HK$603m 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.
What Might The Insider Transactions At Mei Ah Entertainment Group Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Mei Ah Entertainment Group. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Mei Ah Entertainment Group (1 is a bit unpleasant) you should be aware of.
But note: Mei Ah Entertainment Group 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.