Insider Buying: The Yuan Heng Gas Holdings Limited (HKG:332) Chairman & CEO Just Bought 2.3% More Shares

Those following along with Yuan Heng Gas Holdings Limited (HKG:332) will no doubt be intrigued by the recent purchase of shares by Jianqing Wang, Chairman & CEO of the company, who spent a stonking HK$31m on stock at an average price of HK$0.33. While that only increased their holding size by 2.3%, it is still a big swing by our standards.

See our latest analysis for Yuan Heng Gas Holdings

The Last 12 Months Of Insider Transactions At Yuan Heng Gas Holdings

Notably, that recent purchase by Chairman & CEO Jianqing Wang was not the only time they bought Yuan Heng Gas Holdings shares this year. Earlier in the year, they paid HK$0.38 per share in a HK$143m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.32. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays 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. The only individual insider to buy over the last year was Jianqing Wang.

Jianqing Wang bought 473.70m shares over the last 12 months at an average price of HK$0.37. 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!

Yuan Heng Gas Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Yuan Heng Gas Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Yuan Heng Gas Holdings insiders own 63% of the company, currently worth about HK$1.3b 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.

What Might The Insider Transactions At Yuan Heng Gas Holdings Tell Us?

It's certainly positive 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 Yuan Heng Gas Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Yuan Heng Gas Holdings you should be aware of.

Of course Yuan Heng Gas Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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