Insiders were net buyers of Jade Gas Holdings Limited's (ASX:JGH ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Jade Gas Holdings
The Last 12 Months Of Insider Transactions At Jade Gas Holdings
In the last twelve months, the biggest single purchase by an insider was when Executive Director Joseph Burke bought AU$156k worth of shares at a price of AU$0.052 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.048). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Joseph Burke.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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. Jade Gas Holdings insiders own about AU$29m worth of shares. That equates to 38% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Jade Gas Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Jade Gas Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Jade Gas Holdings and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jade Gas Holdings. To help with this, we've discovered 4 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Jade Gas Holdings.