Insiders who bought Silverlake Axis Ltd (SGX:5CP) stock lover the last 12 months are probably not as affected by last week's 7.0% loss. After accounting for the recent loss, the RM18m worth of shares they purchased is now worth RM23m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Silverlake Axis

The Last 12 Months Of Insider Transactions At Silverlake Axis

Over the last year, we can see that the biggest insider purchase was by Founder & Group Executive Chairman Peng Ooi Goh for S$9.2m worth of shares, at about S$0.32 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 57.60m shares for S$18m. But they sold 28.74m shares for S$9.2m. Overall, Silverlake Axis insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Silverlake Axis Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Silverlake Axis, over the last three months. In total, Founder & Group Executive Chairman Peng Ooi Goh bought S$18m worth of shares in that time. But we did see Founder & Group Executive Chairman Peng Ooi Goh sell shares worth S$9.2m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Silverlake Axis

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. Silverlake Axis insiders own 77% of the company, currently worth about S$776m 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 Do The Silverlake Axis Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Silverlake Axis. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Silverlake Axis may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.