From what we can see, insiders were net sellers in TL Natural Gas Holdings Limited's (HKG:8536 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for TL Natural Gas Holdings
TL Natural Gas Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Deputy GM & Executive Director, Yong Qiang Liu, for HK$6.0m worth of shares, at about HK$0.74 per share. That means that even when the share price was below the current price of HK$0.77, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of Yong Qiang Liu's holding. Yong Qiang Liu was the only individual insider to sell shares in the last twelve months.
Yong Qiang Liu ditched 9.83m shares over the year. The average price per share was CN¥0.71. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does TL Natural Gas Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. TL Natural Gas Holdings insiders own about HK$69m worth of shares (which is 49% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At TL Natural Gas Holdings Tell Us?
It doesn't really mean much that no insider has traded TL Natural Gas Holdings shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of TL Natural Gas Holdings insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that TL Natural Gas Holdings has 4 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.
But note: TL Natural Gas Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com