Insider Buying: The China LNG Group Limited (HKG:931) Chairman Just Bought HK$153k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the China LNG Group Limited (HKG:931) Chairman, Che Kin Kan, recently bought HK$153k worth of stock, for HK$0.42 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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The Last 12 Months Of Insider Transactions At China LNG Group

In fact, the recent purchase by Chairman Che Kin Kan was not their only acquisition of China LNG Group shares this year. They previously made an even bigger purchase of HK$1.2m worth of shares at a price of HK$0.24 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.41. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Che Kin Kan bought a total of 10.54m shares over the year at an average price of HK$0.29. 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!

China LNG Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does China LNG Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that China LNG Group insiders own 59% of the company, worth about HK$1.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The China LNG Group Insider Transactions Indicate?

It is good to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest China LNG Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China LNG Group. At Simply Wall St, we've found that China LNG Group has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: China LNG Group 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. 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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