Investors who take an interest in Tsaker New Energy Tech Co., Limited (HKG:1986) should definitely note that the Non-Executive Director, Deyuan Pan, recently paid HK$0.85 per share to buy HK$2.5m 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 6.3%.
The Last 12 Months Of Insider Transactions At Tsaker New Energy Tech
In fact, the recent purchase by Deyuan Pan was the biggest purchase of Tsaker New Energy Tech shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.90. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Tsaker New Energy Tech share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Deyuan Pan.
Deyuan Pan purchased 2.90m shares over the year. The average price per share was HK$0.85. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Tsaker New Energy Tech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Tsaker New Energy Tech 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tsaker New Energy Tech insiders own 59% of the company, currently worth about HK$521m 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.
So What Does This Data Suggest About Tsaker New Energy Tech Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tsaker New Energy Tech. 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. Every company has risks, and we've spotted 4 warning signs for Tsaker New Energy Tech (of which 2 don't sit too well with us!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
