Whilst it may not be a huge deal, we thought it was good to see that the Raffles Education Corporation Limited (SGX:NR7) Independent Non-Executive Director, Chwee Koh Chua, recently bought S$60k worth of stock, for S$0.06 per share. That purchase might not be huge but it did increase their holding by 20%.

See our latest analysis for Raffles Education

Raffles Education Insider Transactions Over The Last Year

The insider, Hong Leong Oei, made the biggest insider sale in the last 12 months. That single transaction was for S$5.3m worth of shares at a price of S$0.099 each. 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 S$0.063. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Hong Leong Oei.

Happily, we note that in the last year insiders paid S$733k for 10.66m shares. But insiders sold 148.01m shares worth S$11m. Hong Leong Oei sold a total of 148.01m shares over the year at an average price of S$0.077. 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!

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

Insider Ownership of Raffles Education

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Raffles Education insiders own about S$37m worth of shares (which is 43% 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 Does This Data Suggest About Raffles Education Insiders?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Raffles Education insiders are reasonably well aligned, and optimistic for the future. 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. For example - Raffles Education has 1 warning sign we think you should be aware of.

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.