Insiders See HK$69.6m Investment In Asia Energy Logistics Group Jump Last Week

Asia Energy Logistics Group Limited (HKG:351) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 25%, resulting in a HK$96m rise in the company's market capitalisation, translating to a gain of 18% on their initial investment. In other words, the original HK$69.6m purchase is now worth HK$82.0m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Asia Energy Logistics Group

Asia Energy Logistics Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Yuet Pang for HK$70m worth of shares, at about HK$0.20 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.24), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Asia Energy Logistics Group insiders own 72% of the company, currently worth about HK$344m 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.

So What Do The Asia Energy Logistics Group Insider Transactions Indicate?

The fact that there have been no Asia Energy Logistics Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Asia Energy Logistics Group 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. Every company has risks, and we've spotted 3 warning signs for Asia Energy Logistics Group you should know about.

But note: Asia Energy Logistics 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 of direct interests only, but not derivative transactions or indirect interests.

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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.