A HK$78m Market Cap Boost Pleasing ToState Energy Group International Assets Holdings Insiders

State Energy Group International Assets Holdings Limited (HKG:918) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a HK$78m rise in the company's market capitalisation, translating to a gain of 12% on their initial investment. In other words, the original HK$6.95m purchase is now worth HK$7.82m.

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

See our latest analysis for State Energy Group International Assets Holdings

The Last 12 Months Of Insider Transactions At State Energy Group International Assets Holdings

The Executive Chairman of the Board Jinbing Zhang made the biggest insider purchase in the last 12 months. That single transaction was for HK$7.0m worth of shares at a price of HK$0.56 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.63. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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. 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).

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. State Energy Group International Assets Holdings insiders own about HK$349m worth of shares (which is 50% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About State Energy Group International Assets Holdings Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about State Energy Group International Assets Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing State Energy Group International Assets Holdings. To that end, you should learn about the 4 warning signs we've spotted with State Energy Group International Assets Holdings (including 2 which are a bit concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.