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Insider Buying: The Starrise Media Holdings Limited (HKG:1616) Chairman Just Bought CN¥41m Worth Of Shares

Simply Wall St

Those following along with Starrise Media Holdings Limited (HKG:1616) will no doubt be intrigued by the recent purchase of shares by Dong Liu, Chairman of the company, who spent a stonking HK$41m on stock at an average price of HK$1.20. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.

See our latest analysis for Starrise Media Holdings

Starrise Media Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Dong Liu was the biggest purchase of Starrise Media Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$1.23. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. 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 Dong Liu.

The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:1616 Recent Insider Trading, January 7th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Starrise 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. Starrise Media Holdings insiders own 49% of the company, currently worth about HK$860m based on the recent share price. 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 Starrise Media Holdings Insider Transactions Indicate?

It's certainly positive 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Starrise Media Holdings. Nice! I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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