State Energy Group International Assets Holdings Limited (HKG:918) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Jinbing Zhang, recently bought a whopping HK$7.0m worth of stock, at a price of HK$0.56. While that only increased their holding size by 2.4%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At State Energy Group International Assets Holdings
Notably, that recent purchase by Jinbing Zhang is the biggest insider purchase of State Energy Group International Assets Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.50). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jinbing Zhang was the only individual insider to buy shares in the last twelve months. We note that Jinbing Zhang was also the biggest seller.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does State Energy Group International Assets Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. State Energy Group International Assets Holdings insiders own about HK$271m worth of shares (which is 49% 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.
So What Does This Data Suggest About State Energy Group International Assets Holdings Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about State Energy Group International Assets Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that State Energy Group International Assets Holdings has 5 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: State Energy Group International Assets Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.