We'd be surprised if SHS Holdings Ltd. (SGX:566) shareholders haven't noticed that the Group CEO & Executive Director, Han Kok Ng, recently sold S$208k worth of stock at S$0.14 per share. On the bright side, that sale was only 1.2% of their holding, so we doubt it's very meaningful, on its own.
Check out our latest analysis for SHS Holdings
The Last 12 Months Of Insider Transactions At SHS Holdings
In fact, the recent sale by Han Kok Ng was the biggest sale of SHS Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of S$0.13. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
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!
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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that SHS Holdings insiders own 42% of the company, worth about S$33m. 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 SHS Holdings Insider Transactions Indicate?
An insider hasn't bought SHS Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that SHS Holdings is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Case in point: We've spotted 2 warning signs for SHS Holdings you should be aware of.
But note: SHS Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.