TL Natural Gas Holdings Limited's (HKG:8536) value has fallen 18% in the last week, but insiders who sold CN¥7.0m worth of stock over the last year have had less success. The average selling price of CN¥0.71 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for TL Natural Gas Holdings

The Last 12 Months Of Insider Transactions At TL Natural Gas Holdings

Over the last year, we can see that the biggest insider sale was by the Deputy GM & Executive Director, Yong Qiang Liu, for HK$6.0m worth of shares, at about HK$0.74 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.49. So it is hard to draw any strong conclusion from it. Yong Qiang Liu was the only individual insider to sell over the last year.

Yong Qiang Liu sold a total of 9.83m shares over the year at an average price of CN¥0.71. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does TL Natural Gas Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. TL Natural Gas Holdings insiders own about HK$49m worth of shares (which is 54% of the company). 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 TL Natural Gas Holdings Insiders?

It doesn't really mean much that no insider has traded TL Natural Gas Holdings shares in the last quarter. While we feel good about high insider ownership of TL Natural Gas Holdings, we can't say the same about the selling of shares. 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. Our analysis shows 3 warning signs for TL Natural Gas Holdings (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: TL Natural Gas 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 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.