Possible Turnaround For Pan Asia Environmental Protection Group Insiders, Still Down CN¥19m

Some of the losses seen by insiders who purchased CN¥40.1m worth of Pan Asia Environmental Protection Group Limited (HKG:556) shares over the past year were recovered after the stock increased by 14% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CN¥19m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Pan Asia Environmental Protection Group

Over the last year, we can see that the biggest insider purchase was by insider Guanfei Liang for HK$40m worth of shares, at about HK$0.73 per share. That means that even when the share price was higher than HK$0.38 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Guanfei Liang was the only individual insider to buy shares in the last twelve months. Notably Guanfei Liang was also the biggest seller.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Pan Asia Environmental Protection Group

Pan Asia Environmental Protection 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.

Does Pan Asia Environmental Protection Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 34% of Pan Asia Environmental Protection Group shares, worth about HK$125m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Pan Asia Environmental Protection Group Tell Us?

It doesn't really mean much that no insider has traded Pan Asia Environmental Protection Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Pan Asia Environmental Protection Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Pan Asia Environmental Protection Group.

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.