In This Article:
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Sino Oil and Gas Holdings Limited (HKG:702).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Sino Oil and Gas Holdings
The Last 12 Months Of Insider Transactions At Sino Oil and Gas Holdings
Yongdong Zhang made the biggest insider purchase in the last 12 months. That single transaction was for HK$179m worth of shares at a price of HK$0.53 each. That means that an insider was happy to buy shares at above the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 1.69b shares worth HK$535m. In the last twelve months there was more buying than selling by Sino Oil and Gas Holdings insiders. They paid about HK$0.32 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is HK$0.14. 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Sino Oil and Gas Holdings Insiders Bought Stock Recently
It’s good to see that Sino Oil and Gas Holdings insiders have made notable investments in the company’s shares. Overall, 2 insiders shelled out HK$94m for shares in the company — and none sold. That shows some optimism about the company’s future.
Does Sino Oil and Gas Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Sino Oil and Gas Holdings insiders own 42% of the company, currently worth about HK$199m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.