Investors who take an interest in NewOcean Energy Holdings Limited (HKG:342) should definitely note that insider Tseng Hon Wong recently paid HK$0.80 per share to buy HK$1.1m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.9%.
NewOcean Energy Holdings Insider Transactions Over The Last Year
Chairman Siu Shum made the biggest insider purchase in the last 12 months. That single transaction was for HK$7.5m worth of shares at a price of HK$1.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.78). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While NewOcean Energy Holdings insiders bought shares during the last year, they didn't sell. Their average price was about HK$1.48. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NewOcean Energy Holdings 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.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NewOcean Energy Holdings insiders own about HK$238m worth of shares. That equates to 21% 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.
What Might The Insider Transactions At NewOcean Energy Holdings Tell Us?
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 NewOcean Energy Holdings. One for the watchlist, at least! 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've found that NewOcean Energy Holdings has 3 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.
But note: NewOcean Energy Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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. Thank you for reading.