How Much Are China Tian Lun Gas Holdings Limited (HKG:1600) Insiders Spending On Buying Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in China Tian Lun Gas Holdings Limited (HKG:1600).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for China Tian Lun Gas Holdings

The Last 12 Months Of Insider Transactions At China Tian Lun Gas Holdings

In the last twelve months, the biggest single purchase by an insider was when CEO, GM & Executive Director Zhenyuan Xian bought HK$15m worth of shares at a price of HK$4.97 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$6.91. 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.

China Tian Lun Gas Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

China Tian Lun Gas Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of China Tian Lun Gas Holdings

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. China Tian Lun Gas Holdings insiders own 15% of the company, currently worth about HK$1.0b 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.

What Might The Insider Transactions At China Tian Lun Gas Holdings Tell Us?

It doesn't really mean much that no insider has traded China Tian Lun Gas Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, China Tian Lun Gas Holdings insiders feel good about the company's future. 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 2 warning signs for China Tian Lun Gas Holdings you should know about.

But note: China Tian Lun Gas 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. 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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