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One Suntec Real Estate Investment Trust (SGX:T82U) insider reduced their stake by 100% in the previous year

Simply Wall St ·  Jul 28, 2022 18:50

Viewing insider transactions for Suntec Real Estate Investment Trust's (SGX:T82U ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Suntec Real Estate Investment Trust

Suntec Real Estate Investment Trust Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Wai-Wai Chow, for S$3.0m worth of shares, at about S$1.52 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of S$1.60. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Wai-Wai Chow's stake. The only individual insider seller over the last year was Wai-Wai Chow.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volumeSGX:T82U Insider Trading Volume July 28th 2022

I will like Suntec Real Estate Investment Trust better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Suntec Real Estate Investment Trust

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Suntec Real Estate Investment Trust insiders own 21% of the company, worth about S$967m. 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 Suntec Real Estate Investment Trust Insider Transactions Indicate?

The fact that there have been no Suntec Real Estate Investment Trust insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Suntec Real Estate Investment Trust insider transactions don't fill us with confidence. 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. For instance, we've identified 4 warning signs for Suntec Real Estate Investment Trust (2 make us uncomfortable) you should be aware of.

But note: Suntec Real Estate Investment Trust 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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