Tsaker New Energy Tech Insider Buyers See Boost After Market Cap Rose HK$136m

Tsaker New Energy Tech Co., Limited (HKG:1986) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a HK$136m addition to the company’s market value. Put another way, the original CN¥54.8m acquisition is now worth CN¥61.9m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Tsaker New Energy Tech

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Deyuan Pan for HK$55m worth of shares, at about HK$0.84 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.95. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

Check out our latest analysis for Tsaker New Energy Tech

Tsaker New Energy Tech is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tsaker New Energy Tech insiders own 76% of the company, currently worth about HK$700m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Tsaker New Energy Tech Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Tsaker New Energy Tech insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Tsaker New Energy Tech (1 is a bit concerning!) and we strongly recommend you look at these before investing.

But note: Tsaker New Energy Tech 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 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.