Even if it's not a huge purchase, we think it was good to see that Benety Chang, the Executive Director of Baker Technology Limited (SGX:BTP) recently shelled out S$93k to buy stock, at S$0.57 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Check out our latest analysis for Baker Technology
Baker Technology Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Director Benety Chang was not the only time they bought Baker Technology shares this year. Earlier in the year, they paid S$0.61 per share in a S$1.9m purchase. That means that even when the share price was higher than S$0.59 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Baker Technology insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Baker Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Baker Technology Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Baker Technology insiders own 68% of the company, currently worth about S$82m based on the recent share price. 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 Does This Data Suggest About Baker Technology Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Baker Technology. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Baker Technology. In terms of investment risks, we've identified 1 warning sign with Baker Technology and understanding this should be part of your investment process.
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.