One Zhongyu Energy Holdings Insider Raised Their Stake In The Previous Year

From what we can see, insiders were net buyers in Zhongyu Energy Holdings Limited's (HKG:3633 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Zhongyu Energy Holdings

The Last 12 Months Of Insider Transactions At Zhongyu Energy Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Wenliang Wang for HK$2.9m worth of shares, at about HK$5.77 per share. That means that an insider was happy to buy shares at above the current price of HK$5.74. 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. Wenliang Wang was the only individual insider to buy shares in the last twelve months.

Wenliang Wang bought a total of 2.00m shares over the year at an average price of HK$5.74. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Zhongyu Energy Holdings Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Zhongyu Energy Holdings insiders own 36% of the company, currently worth about HK$5.9b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Zhongyu Energy Holdings Tell Us?

The fact that there have been no Zhongyu Energy Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Zhongyu Energy Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Zhongyu Energy Holdings has 3 warning signs (and 2 which are significant) we think you should know about.

But note: Zhongyu Energy 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.