Despite the fact that Silk Road Energy Services Group Limited's (HKG:8250) value has dropped 16% in the last week insiders who sold HK$1.4m worth of stock in the past 12 months have had less success. The average selling price of HK$0.19 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Silk Road Energy Services Group
Silk Road Energy Services Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Gongming Xu, for HK$1.4m worth of shares, at about HK$0.19 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.14). So it may not shed much light on insider confidence at current levels. Gongming Xu was the only individual insider to sell over the last year.
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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Silk Road Energy Services Group
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. We usually like to see fairly high levels of insider ownership. It appears that Silk Road Energy Services Group insiders own 28% of the company, worth about HK$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Silk Road Energy Services Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. 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. 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 Silk Road Energy Services Group has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Silk Road Energy Services Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.