Insiders sit comfortably on a HK$136 million profit after buying shares of Zhongyu Energy Holdings Limited (HKG:3633) worth HK$1.3 billion last year
Insiders who bought Zhongyu Energy Holdings Limited (HKG:3633) 12-month equity fans probably aren’t as affected by last week’s 5.0% loss. After taking into consideration the recent loss, the shares they purchased are now worth HK$1.3 billion, indicating that their investment has generated a positive return.
While we don’t think shareholders should simply follow insider trading, we think it makes perfect sense to keep tabs on what insiders are doing.
Check out our latest analysis for Zhongyu Energy Holdings
The last 12 months of insider trading at Zhongyu Energy Holdings
Over the past year, we can see that the biggest insider buy was made by Vice Chairman Chi Shing Yiu for HK$1.1 billion of shares, at around HK$5.80 per share. . Even though the purchase was made at a price significantly lower than the recent price (HK$6.61), we still believe that insider buying is positive. While this suggests insiders consider the stock undervalued at lower prices, this trade tells us little about what they think of current prices.
Over the past twelve months, insiders have purchased 223.73 million shares for HK$1.3 billion. But insiders sold 7.27 million shares worth HK$51 million. Overall, Zhongyu Energy Holdings insiders have been net buyers over the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are many other companies whose insiders buy shares. You probably do do not want to miss this free list of growing companies insiders are buying.
Zhongyu Energy Holdings insiders recently bought shares
It’s good to see that insiders at Zhongyu Energy Holdings have made notable investments in the company’s stock. Specifically, the executive chairman of the board, Wenliang Wang, bought HK$7.9 million worth of shares at that time, and we did not record any sales. This suggests that the company has good points.
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. We generally like to see fairly high levels of insider ownership. Insiders of Zhongyu Energy Holdings own approximately HK$6.8 billion in shares (or 36% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about Zhongyu Energy Holdings insiders?
The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about Zhongyu Energy Holdings. Sounds promising! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. To do this, you need to find out about the 3 warning signs we spotted with Zhongyu Energy Holdings (including 1 that is potentially serious).
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.