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Zhonghua Gas Holdings Limited (HKG:8246) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Yishi Hu, recently bought a whopping CN¥11m worth of stock, at a price of CN¥0.28. While that only increased their holding size by 8.7%, it is still a big swing by our standards.
View our latest analysis for Zhonghua Gas Holdings
Zhonghua Gas Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman Yishi Hu was not their only acquisition of Zhonghua Gas Holdings shares this year. Earlier in the year, they paid HK$0.28 per share in a HK$11m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.14. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. 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. The only individual insider to buy over the last year was Yishi Hu.
You can see a visual depiction of insider transactions (by 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!
Zhonghua 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zhonghua Gas Holdings insiders own 45% of the company, currently worth about HK$478m 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 Does This Data Suggest About Zhonghua Gas Holdings Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Zhonghua Gas Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Along with insider transactions, I recommend checking if Zhonghua Gas Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.