Those following along with CSE Global Limited (SGX:544) will no doubt be intrigued by the recent purchase of shares by Boon Kheng Lim, CEO, Group MD & Executive Director of the company, who spent a stonking S$1.1m on stock at an average price of S$0.43. Not only is that a big swing, but it increased their holding size by 14%, which is definitely great to see.
See our latest analysis for CSE Global
The Last 12 Months Of Insider Transactions At CSE Global
In fact, the recent purchase by Boon Kheng Lim was the biggest purchase of CSE Global shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of S$0.43. 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 CSE Global insiders decided to buy shares at close to current prices.
While CSE Global insiders bought shares during the last year, they didn't sell. They paid about S$0.38 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
CSE Global is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Insiders own 7.1% of CSE Global shares, 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 CSE Global Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of CSE Global we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for CSE Global (of which 2 shouldn't be ignored!) you should know about.
But note: CSE Global 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.