Insiders Re-Evaluate Their CN¥429.9m Stock Purchase As Sino-Synergy Hydrogen Energy Technology (Jiaxing) Falls To HK$7.5b

The recent price decline of 14% in Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd.'s (HKG:9663) stock may have disappointed insiders who bought CN¥429.9m worth of shares at an average price of CN¥19.66 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CN¥317.0m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Sino-Synergy Hydrogen Energy Technology (Jiaxing)

The Last 12 Months Of Insider Transactions At Sino-Synergy Hydrogen Energy Technology (Jiaxing)

The insider Sin Hang Kwan made the biggest insider purchase in the last 12 months. That single transaction was for HK$216m worth of shares at a price of HK$19.66 each. That means that even when the share price was higher than HK$14.50 (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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Sin Hang Kwan was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$430m for 21.87m shares. But insiders sold 18.57m shares worth HK$365m. Overall, Sino-Synergy Hydrogen Energy Technology (Jiaxing) insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Sino-Synergy Hydrogen Energy Technology (Jiaxing) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Sino-Synergy Hydrogen Energy Technology (Jiaxing) insiders own 18% of the company, currently worth about HK$1.3b based on the recent share price. 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 Sino-Synergy Hydrogen Energy Technology (Jiaxing) Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Sino-Synergy Hydrogen Energy Technology (Jiaxing) insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. While conducting our analysis, we found that Sino-Synergy Hydrogen Energy Technology (Jiaxing) has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.