Trade Alert: The Executive Chairman Of China Gas Holdings Limited (HKG:384), Ming Hui Liu, Has Just Spent HK$13m Buying A Few More Shares

China Gas Holdings Limited (HKG:384) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Ming Hui Liu, recently bought a whopping HK$13m worth of stock, at a price of HK$25.19. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.1%.

View our latest analysis for China Gas Holdings

China Gas Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive President & Executive Director Yong Huang for HK$14m worth of shares, at about HK$28.70 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$24.10). 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid HK$41m for 1.55m shares. On the other hand they divested 414400 shares, for HK$12m. Overall, China Gas Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by individuals) over the last year. 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).

Does China Gas Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. China Gas Holdings insiders own about HK$12b worth of shares (which is 10.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About China Gas Holdings Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Gas Holdings. Looks promising! 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. At Simply Wall St, we found 1 warning sign for China Gas Holdings that deserve your attention before buying any shares.

Of course China Gas Holdings 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. 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.
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