Wenliang Wang Spends HK$2.4m On Zhongyu Energy Holdings Stock

Potential Zhongyu Energy Holdings Limited (HKG:3633) shareholders may wish to note that the Executive Chairman of the Board, Wenliang Wang, recently bought HK$2.4m worth of stock, paying HK$4.90 for each 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.

Check out our latest analysis for Zhongyu Energy Holdings

Zhongyu Energy Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman of the Board Wenliang Wang was not their only acquisition of Zhongyu Energy Holdings shares this year. They previously made an even bigger purchase of HK$2.9m worth of shares at a price of HK$5.77 per share. That means that even when the share price was higher than HK$4.92 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Wenliang Wang was the only individual insider to buy during the last year.

Wenliang Wang purchased 2.50m shares over the year. The average price per share was HK$5.57. 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!

Zhongyu Energy 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Zhongyu Energy Holdings insiders own 36% of the company, worth about HK$5.0b. 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 Zhongyu Energy Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zhongyu Energy Holdings. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Zhongyu Energy Holdings that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.