Whilst it may not be a huge deal, we thought it was good to see that the Henan Jinma Energy Company Limited (HKG:6885) Executive Chairman of the Board, Chiu Fai Yiu, recently bought HK$123k worth of stock, for HK$3.16 per share. However, it only increased their shares held by 2.6%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Henan Jinma Energy

The Last 12 Months Of Insider Transactions At Henan Jinma Energy

Notably, that recent purchase by Chiu Fai Yiu is the biggest insider purchase of Henan Jinma Energy shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$3.30. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Henan Jinma Energy share holders is that an insider was buying at near the current price. Chiu Fai Yiu was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about HK$5.0m worth of Henan Jinma Energy shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Henan Jinma Energy Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Henan Jinma Energy stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Henan Jinma Energy. For example, Henan Jinma Energy has 4 warning signs (and 2 which can't be ignored) we think you should know about.

Of course Henan Jinma Energy 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, 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.