Strong Petrochemical Holdings Up 35%, Insider Buyers Are Up 16% \

Strong Petrochemical Holdings Limited (HKG:852) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 35% resulting in a HK$104m addition to the company’s market value. As a result, the stock they originally bought for HK$8.3m is now worth HK$9.6m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Strong Petrochemical Holdings

Strong Petrochemical Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Jian Sheng Wang for HK$4.9m worth of shares, at about HK$0.17 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.19. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Jian Sheng Wang bought 50.58m shares over the last 12 months at an average price of HK$0.16. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Strong Petrochemical 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Strong Petrochemical Holdings insiders own about HK$101m worth of shares. That equates to 25% of the company. 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 Does This Data Suggest About Strong Petrochemical Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Strong Petrochemical Holdings insiders think the business has merit. 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. Be aware that Strong Petrochemical Holdings is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Strong Petrochemical Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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.