Whilst it may not be a huge deal, we thought it was good to see that the Tye Soon Limited (SGX:BFU) MD & Executive Director, Tek Yew Chong, recently bought S$60k worth of stock, for S$0.40 per share. Although the purchase is not a big one, increasing their shareholding by only 4.4%, it can be interpreted as a good sign.

See our latest analysis for Tye Soon

The Last 12 Months Of Insider Transactions At Tye Soon

In fact, the recent purchase by Tek Yew Chong was the biggest purchase of Tye Soon shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of S$0.40 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Tye Soon insider decided to buy shares at close to current prices. Tek Yew Chong was the only individual insider to buy shares in the last twelve months.

Tek Yew Chong bought 771.70k shares over the last 12 months at an average price of S$0.40. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Tye Soon is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Tye Soon

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Tye Soon insiders own 23% of the company, worth about S$8.0m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Tye Soon Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Tye Soon we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we've found that Tye Soon has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Tye Soon 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.