NetLink NBN Trust (SGX:CJLU) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Non-Independent Director of Netlink NBN Management Pte. Ltd., Yew Tong, recently bought a whopping S$845k worth of stock, at a price of S$8.45. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.
NetLink NBN Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Yew Tong was the biggest purchase of NetLink NBN Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.85). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Yew Tong.
Yew Tong purchased 200.00k shares over the year. The average price per share was S$4.64. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does NetLink NBN Trust 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that NetLink NBN Trust insiders own 0.4% of the company, worth about S$12m. We do generally prefer see higher levels of insider ownership.
So What Do The NetLink NBN Trust 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 NetLink NBN Trust we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NetLink NBN Trust. For example - NetLink NBN Trust has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.