Those following along with Suntec Real Estate Investment Trust (SGX:T82U) will no doubt be intrigued by the recent purchase of shares by insider Chen Huaidan, who spent a stonking S$1.6m on stock at an average price of S$1.60. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
Check out our latest analysis for Suntec Real Estate Investment Trust
Suntec Real Estate Investment Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Wai-Wai Chow, sold S$3.0m worth of shares at a price of 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$1.59. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Wai-Wai Chow's stake. Wai-Wai Chow was the only individual insider to sell shares in the last twelve months.
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!SGX:T82U Insider Trading Volume August 26th 2022
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Suntec Real Estate Investment Trust Boast High Insider Ownership?
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. Suntec Real Estate Investment Trust insiders own about S$1.2b worth of shares (which is 27% of the company). 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 Suntec Real Estate Investment Trust Insider Transactions Indicate?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that Suntec Real Estate Investment Trust insiders are fairly aligned, and optimistic. 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. When we did our research, we found 4 warning signs for Suntec Real Estate Investment Trust (2 are concerning!) that we believe deserve your full attention.
Of course Suntec Real Estate Investment Trust 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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