Those following along with Zhonghua Gas Holdings Limited (HKG:8246) will no doubt be intrigued by the recent purchase of shares by Yishi Hu, Executive Chairman of the company, who spent a stonking HK$27m on stock at an average price of HK$0.12. Not only is that a big swing, but it increased their holding size by 42%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Zhonghua Gas Holdings
In fact, the recent purchase by Yishi Hu was the biggest purchase of Zhonghua Gas Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$0.12 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Yishi Hu was the only individual insider to buy during 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!
See our latest analysis for Zhonghua Gas Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zhonghua Gas Holdings insiders own about HK$207m worth of shares (which is 43% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Zhonghua Gas Holdings Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zhonghua Gas Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhonghua Gas Holdings. For instance, we've identified 3 warning signs for Zhonghua Gas Holdings (2 are concerning) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.