We'd be surprised if Zhongyu Energy Holdings Limited (HKG:3633) shareholders haven't noticed that the CEO, Company Secretary & Executive Director, Siu Keung Lui, recently sold HK$1.1m worth of stock at HK$6.87 per share. However, the silver lining is that the sale only reduced their total holding by 1.3%, so we're hesitant to read anything much into it, on its own.
View our latest analysis for Zhongyu Energy Holdings
The Last 12 Months Of Insider Transactions At Zhongyu Energy Holdings
In the last twelve months, the biggest single purchase by an insider was when Vice Chairman Chi Shing Yiu bought HK$1.1b worth of shares at a price of HK$5.80 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$6.87. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid HK$1.3b for 223.73m shares. On the other hand they divested 6.90m shares, for HK$49m. In the last twelve months there was more buying than selling by Zhongyu Energy Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!SEHK:3633 Insider Trading Volume June 29th 2022
Zhongyu Energy Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Zhongyu Energy Holdings insiders own about HK$7.0b worth of shares (which is 36% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Zhongyu Energy Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Zhongyu Energy Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhongyu Energy Holdings. For example, Zhongyu Energy Holdings has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
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, but not derivative transactions.
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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.