Potential Alset Inc. (NASDAQ:AEI) shareholders may wish to note that the Founder, Fai Heng Chan, recently bought US$361k worth of stock, paying US$1.80 for each share. Although the purchase only increased their holding by 4.2%, it is still a solid purchase in our view.
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The Last 12 Months Of Insider Transactions At Alset
In fact, the recent purchase by Founder Fai Heng Chan was not their only acquisition of Alset shares this year. Earlier in the year, they paid US$2.20 per share in a US$1.2m purchase. That means that an insider was happy to buy shares at above the current price of US$1.84. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Fai Heng Chan was the only individual insider to buy shares in the last twelve months.
Fai Heng Chan bought a total of 949.66k shares over the year at an average price of US$2.54. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Alset insiders own 51% of the company, worth about US$8.7m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Alset Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Alset. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alset. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in Alset.