We wouldn't blame Willas-Array Electronics (Holdings) Limited (SGX:BDR) shareholders if they were a little worried about the fact that Chun Wah Leung, a company insider, recently netted about S$25m selling shares at an average price of S$1.70. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.
Check out our latest analysis for Willas-Array Electronics (Holdings)
Willas-Array Electronics (Holdings) Insider Transactions Over The Last Year
Notably, that recent sale by Chun Wah Leung is the biggest insider sale of Willas-Array Electronics (Holdings) shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of S$0.58. So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Willas-Array Electronics (Holdings) shares, than buying. 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!
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Insider Ownership
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. It appears that Willas-Array Electronics (Holdings) insiders own 38% of the company, worth about S$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Willas-Array Electronics (Holdings) Insider Transactions Indicate?
Insiders sold Willas-Array Electronics (Holdings) shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Willas-Array Electronics (Holdings) is showing 8 warning signs in our investment analysis, and 3 of those are significant...
Of course Willas-Array Electronics (Holdings) 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.