Insiders Who Purchased HK$44.0m Of Xinhua News Media Holdings Stock May Not Have Expected 15% Tumble

Insiders who bought HK$44.0m worth of Xinhua News Media Holdings Limited's (HKG:309) stock at an average buy price of HK$0.068 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$22.6m which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Xinhua News Media Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Wai Yin Lam bought HK$36m worth of shares at a price of HK$0.08 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.035). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 646.18m shares for HK$44m. But insiders sold 128.11m shares worth HK$10m. Overall, Xinhua News Media Holdings insiders were net buyers during the last year. Their average price was about HK$0.068. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Xinhua News Media Holdings

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).

Insiders At Xinhua News Media Holdings Have Bought Stock Recently

Over the last quarter, Xinhua News Media Holdings insiders have spent a meaningful amount on shares. We can see that insider Xiangren Chen paid HK$6.0m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Does Xinhua News Media Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Xinhua News Media Holdings insiders own 50% of the company, worth about HK$34m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Xinhua News Media Holdings Tell Us?

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 Xinhua News Media Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xinhua News Media Holdings. Be aware that Xinhua News Media Holdings is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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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.