Whilst it may not be a huge deal, we thought it was good to see that the Tai Sin Electric Limited (SGX:500) CEO & Executive Director, Boon Hock Lim, recently bought S$53k worth of stock, for S$0.39 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
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The Last 12 Months Of Insider Transactions At Tai Sin Electric
Notably, that recent purchase by CEO & Executive Director Boon Hock Lim was not the only time they bought Tai Sin Electric shares this year. They previously made an even bigger purchase of S$108k worth of shares at a price of S$0.39 per share. 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 Tai Sin Electric insiders decided to buy shares at close to current prices.
While Tai Sin Electric insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Tai Sin Electric 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 Tai Sin Electric
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tai Sin Electric insiders own about S$117m worth of shares (which is 64% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Tai Sin Electric Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Tai Sin Electric insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. While conducting our analysis, we found that Tai Sin Electric has 1 warning sign and it would be unwise to ignore this.
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.