Even if it's not a huge purchase, we think it was good to see that Chung Chun Lim, the Executive Chairman & CEO of iFAST Corporation Ltd. (SGX:AIY) recently shelled out S$129k to buy stock, at S$3.80 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for iFAST

The Last 12 Months Of Insider Transactions At iFAST

In fact, the recent purchase by Executive Chairman & CEO Chung Chun Lim was not their only acquisition of iFAST shares this year. They previously made an even bigger purchase of S$298k worth of shares at a price of S$5.96 per share. That means that even when the share price was higher than S$4.10 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 104.10k shares for S$521k. On the other hand they divested 35.60k shares, for S$247k. In total, iFAST insiders bought more than they sold over the last year. They paid about S$5.01 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

iFAST is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of iFAST

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. iFAST insiders own about S$353m worth of shares (which is 29% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The iFAST Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about iFAST. 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. While conducting our analysis, we found that iFAST has 3 warning signs and it would be unwise to ignore them.

But note: iFAST 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. 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.