We wouldn't blame China Gas Holdings Limited (HKG:384) shareholders if they were a little worried about the fact that Ming Hui Liu, the Executive Chairman recently netted about HK$15m selling shares at an average price of HK$7.38. However, that sale only accounted for 0.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At China Gas Holdings
Notably, that recent sale by Executive Chairman Ming Hui Liu was not the only time they sold China Gas Holdings shares this year. Earlier in the year, they fetched HK$6.66 per share in a -HK$40m sale. That means that even when the share price was below the current price of HK$7.13, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 1.5% of Ming Hui Liu's holding.
In the last year China Gas Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for China Gas Holdings
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Does China Gas Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Gas Holdings insiders own 11% of the company, currently worth about HK$4.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About China Gas Holdings Insiders?
An insider hasn't bought China Gas Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that China Gas Holdings is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Gas Holdings. To that end, you should learn about the 3 warning signs we've spotted with China Gas Holdings (including 1 which is a bit concerning).
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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.