AEM Holdings Ltd.'s (SGX:AWX) stock price has dropped 24% in the previous week, but insiders who sold S$3.5m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of S$3.42 is still below the current share price.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
AEM Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Lead Independent Non-Executive Director, Ban Leng Toh, sold S$1.2m worth of shares at a price of S$3.36 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (S$2.14). So it may not shed much light on insider confidence at current levels. Ban Leng Toh was the only individual insider to sell over the last year.
Ban Leng Toh ditched 1.01m shares over the year. The average price per share was S$3.42. 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!
I will like AEM Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of AEM Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.3% of AEM Holdings shares, worth about S$48m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About AEM Holdings Insiders?
The fact that there have been no AEM Holdings insider transactions recently certainly doesn't bother us. Still, the insider transactions at AEM Holdings in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AEM Holdings.
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 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.