Jun Zhang Just Bought 45% More Shares In Sunshine Oilsands Ltd. (HKG:2012)

Sunshine Oilsands Ltd. (HKG:2012) shareholders (or potential shareholders) will be happy to see that insider Jun Zhang recently bought a whopping HK$9.1m worth of stock, at a price of HK$1.46. Not only is that a big swing, but it increased their holding size by 45%, which is definitely great to see.

View our latest analysis for Sunshine Oilsands

The Last 12 Months Of Insider Transactions At Sunshine Oilsands

In fact, the recent purchase by Jun Zhang was the biggest purchase of Sunshine Oilsands shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.37). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jun Zhang was the only individual insider to buy during the last year. Notably Jun Zhang was also the biggest seller.

Jun Zhang purchased 9.45m shares over the year. The average price per share was HK$1.64. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sunshine Oilsands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Sunshine Oilsands

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. Sunshine Oilsands insiders own 45% of the company, currently worth about HK$85m based on the recent share price. 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 Do The Sunshine Oilsands Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Sunshine Oilsands insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. For example, Sunshine Oilsands has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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, 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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