Despite the fact that Silk Road Energy Services Group Limited's (HKG:8250) value has dropped 17% in the last week insiders who sold HK$1.4m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.19 is still lower than the current share price.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Silk Road Energy Services Group
Silk Road Energy Services Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Gongming Xu, sold HK$1.4m worth of shares at a price of HK$0.19 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.15. So it is hard to draw any strong conclusion from it. Gongming Xu was the only individual insider to sell over the last year. Notably Gongming Xu was also the biggest buyer, having purchased HK$1.2m worth of shares.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 28% of Silk Road Energy Services Group shares, worth about HK$16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Silk Road Energy Services Group Tell Us?
The fact that there have been no Silk Road Energy Services Group insider transactions recently certainly doesn't bother us. Our analysis of Silk Road Energy Services Group insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Silk Road Energy Services Group (1 can't be ignored!) and we strongly recommend you look at these before investing.
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 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.