Anyone interested in Beisen Holding Limited (HKG:9669) should probably be aware that the Executive Chairman of the Board, Zhaohui Wang, recently divested HK$1.5m worth of shares in the company, at an average price of HK$4.03 each. However, the silver lining is that the sale only reduced their total holding by 0.4%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Beisen Holding

The insider Hong Jing made the biggest insider purchase in the last 12 months. That single transaction was for HK$129m worth of shares at a price of HK$3.30 each. We do like to see buying, but this purchase was made at well below the current price of HK$4.07. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 53.59m shares worth HK$195m. But insiders sold 376.46k shares worth HK$1.5m. Overall, Beisen Holding insiders were net buyers during the last year. They paid about HK$3.63 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Beisen Holding Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Beisen Holding insiders own 32% of the company, worth about HK$912m. 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 Does This Data Suggest About Beisen Holding Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Beisen Holding insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Beisen Holding (including 1 which shouldn't be ignored).

But note: Beisen Holding 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.