Stock Analysis

More money in the bank for insiders who divested CN¥922m worth of Tian Lun Gas Holdings Limited (HKG:1600) shares last year

  •  Updated
Source: Shutterstock

Last week, Tian Lun Gas Holdings Limited's (HKG:1600) stock jumped 13%, but insiders who sold CN¥922m worth of stock in over the past year are likely to be in a better position. Selling at an average price of CN¥7.68, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Tian Lun Gas Holdings

Tian Lun Gas Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder & Chairman of the Board, Yingcen Zhang, sold HK$922m worth of shares at a price of HK$7.68 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$5.57. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Yingcen Zhang.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:1600 Insider Trading Volume March 21st 2022

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 of 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tian Lun Gas Holdings insiders own about HK$2.0b worth of shares (which is 35% of the company). 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 Tian Lun Gas Holdings Tell Us?

It doesn't really mean much that no insider has traded Tian Lun Gas Holdings shares in the last quarter. While we feel good about high insider ownership of Tian Lun Gas Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tian Lun Gas Holdings. Case in point: We've spotted 3 warning signs for Tian Lun Gas Holdings you should be aware of.

But note: 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.

Valuation is complex, but we're helping make it simple.

Find out whether Tian Lun Gas Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis