Investors who take an interest in Hong Lai Huat Group Limited (SGX:CTO) should definitely note that the Executive Deputy Chairman & Group CEO, Bee Huat Ong, recently paid S$0.066 per share to buy S$264k worth of the stock. Although the purchase only increased their holding by 1.9%, it is still a solid purchase in our view.
See our latest analysis for Hong Lai Huat Group
Hong Lai Huat Group Insider Transactions Over The Last Year
Notably, that recent purchase by Bee Huat Ong is the biggest insider purchase of Hong Lai Huat Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of S$0.073. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hong Lai Huat Group share holders is that an insider was buying at near the current price. Bee Huat Ong was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hong Lai Huat Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Hong Lai Huat Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Hong Lai Huat Group insiders own 59% of the company, currently worth about S$22m based on the recent share price. 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 Hong Lai Huat Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hong Lai Huat Group. Nice! 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. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Hong Lai Huat Group.
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.