We'd be surprised if Forise International Limited (SGX:8A1) shareholders haven't noticed that an insider, E-Ming Ng, recently sold S$245k worth of stock at S$0.14 per share. That sale was 27% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Forise International

The Last 12 Months Of Insider Transactions At Forise International

The Executive Director Peng Weile Leo made the biggest insider purchase in the last 12 months. That single transaction was for S$1.6m worth of shares at a price of S$0.13 each. That means that an insider was happy to buy shares at above the current price of S$0.12. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peng Weile Leo was the only individual insider to buy during the last year.

All up, insiders sold more shares in Forise International than they bought, over 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!

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Does Forise International 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Forise International insiders own about S$3.1m worth of shares (which is 61% of the company). 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 Forise International Insider Transactions Indicate?

An insider hasn't bought Forise International stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Forise International (of which 3 can't be ignored!) you should know about.

But note: Forise International 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.