Potential JiaXing Gas Group Co., Ltd. (HKG:9908) shareholders may wish to note that the Chairman & CEO, Lianqing Sun, recently bought HK$3.2m worth of stock, paying HK$7.53 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 33%.
Check out our latest analysis for JiaXing Gas Group
JiaXing Gas Group Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Lianqing Sun was not their only acquisition of JiaXing Gas Group shares this year. Earlier in the year, they paid HK$7.59 per share in a HK$10m purchase. That means that an insider was happy to buy shares at around the current price of HK$7.60. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. 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 Lianqing Sun.
Lianqing Sun bought 1.75m shares over the last 12 months at an average price of HK$7.58. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
JiaXing Gas Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. JiaXing Gas Group insiders own about HK$392m worth of shares. That equates to 37% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At JiaXing Gas Group Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest JiaXing Gas Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for JiaXing Gas Group (1 shouldn't be ignored!) that we believe deserve your full attention.
But note: JiaXing Gas Group 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.