Shiu Ming Tong Just Bought 95% More Shares In NewOcean Energy Holdings Limited (HKG:342)

Potential NewOcean Energy Holdings Limited (HKG:342) shareholders may wish to note that insider Shiu Ming Tong recently bought HK$1.9m worth of stock, paying HK$0.69 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 95%, potentially signalling some real optimism.

Check out our latest analysis for NewOcean Energy Holdings

The Last 12 Months Of Insider Transactions At NewOcean Energy Holdings

In fact, the recent purchase by Shiu Ming Tong was the biggest purchase of NewOcean Energy Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$0.67 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While NewOcean Energy Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NewOcean Energy Holdings 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

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. NewOcean Energy Holdings insiders own about HK$219m worth of shares. That equates to 22% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The NewOcean Energy Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NewOcean Energy Holdings. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for NewOcean Energy Holdings (1 is a bit unpleasant) you should be aware of.

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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