Zhuyun Yu Spends HK$3.8m On Central New Energy Holding Group Stock

Investors who take an interest in Central New Energy Holding Group Limited (HKG:1735) should definitely note that the Executive Chairman & CEO, Zhuyun Yu, recently paid HK$8.57 per share to buy HK$3.8m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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Central New Energy Holding Group Insider Transactions Over The Last Year

In fact, the recent purchase by Zhuyun Yu was the biggest purchase of Central New Energy Holding Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$7.98 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Zhuyun Yu was the only individual insider to buy shares in the last twelve months.

Zhuyun Yu bought a total of 577.00k shares over the year at an average price of HK$8.54. 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!

View our latest analysis for Central New Energy Holding Group

Central New Energy Holding Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Central New Energy Holding Group insiders own about HK$22b worth of shares (which is 65% 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 Central New Energy Holding Group Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Central New Energy Holding Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of 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, Central New Energy Holding Group has 3 warning signs (and 2 which are potentially serious) we think you should know about.

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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.