We wouldn't blame Silk Road Energy Services Group Limited (HKG:8250) shareholders if they were a little worried about the fact that Gongming Xu, a company insider, recently netted about HK$5.0m selling shares at an average price of HK$0.015. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.
Silk Road Energy Services Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Ying Chen, sold HK$5.7m worth of shares at a price of HK$0.024 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$0.022. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid HK$14m for 795.96m shares. On the other hand they divested 623100000 shares, for HK$12m. In total, Silk Road Energy Services Group insiders bought more than they sold over the last year. Their average price was about HK$0.018. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!
Silk Road Energy Services Group is not the only stock that insiders are buying. 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 Silk Road Energy Services Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Silk Road Energy Services Group insiders own about HK$52m worth of shares. That equates to 31% 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 Does This Data Suggest About Silk Road Energy Services Group Insiders?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Silk Road Energy Services Group and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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