Envictus International Holdings Limited (SGX:BQD) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, J. B. Tan, recently bought a whopping S$7.7m worth of stock, at a price of S$0.33. That purchase boosted their holding by 51%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Envictus International Holdings

Envictus International Holdings Insider Transactions Over The Last Year

The insider Chih Kwong Cheng made the biggest insider purchase in the last 12 months. That single transaction was for S$11m worth of shares at a price of S$0.23 each. We do like to see buying, but this purchase was made at well below the current price of S$0.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 128.07m shares worth S$29m. On the other hand they divested 124.64m shares, for S$28m. Overall, Envictus International Holdings insiders were net buyers during the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Envictus International Holdings insiders own 76% of the company, currently worth about S$63m 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 Envictus International Holdings Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Envictus International Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 3 warning signs for Envictus International Holdings (1 is a bit concerning!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.