Trade Alert: The Executive Chairman Of NewOcean Energy Holdings Limited (HKG:342), Siu Shum, Has Just Spent HK$1.1m Buying 1.5% More Shares

Investors who take an interest in NewOcean Energy Holdings Limited (HKG:342) should definitely note that the Executive Chairman, Siu Shum, recently paid HK$0.69 per share to buy HK$1.1m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.5%.

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 Siu Shum was the biggest purchase of NewOcean Energy Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.69. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months NewOcean Energy Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does NewOcean Energy Holdings 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. We usually like to see fairly high levels of insider ownership. It appears that NewOcean Energy Holdings insiders own 22% of the company, worth about HK$223m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The NewOcean Energy Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about NewOcean Energy Holdings. 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. Our analysis shows 2 warning signs for NewOcean Energy Holdings (1 is concerning!) and we strongly recommend you look at these before investing.

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, 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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