In This Article:
Whilst it may not be a huge deal, we thought it was good to see that the Tai Sin Electric Limited (SGX:500) CEO & Executive Director, Boon Hock Lim, recently bought S$79k worth of stock, for S$0.39 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for Tai Sin Electric
The Last 12 Months Of Insider Transactions At Tai Sin Electric
In fact, the recent purchase by CEO & Executive Director Boon Hock Lim was not their only acquisition of Tai Sin Electric shares this year. They previously made an even bigger purchase of S$186k worth of shares at a price of S$0.40 per share. That means that an insider was happy to buy shares at above the current price of S$0.40. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Tai Sin Electric insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Tai Sin Electric 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Tai Sin Electric insiders own 66% of the company, worth about S$119m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tai Sin Electric Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tai Sin Electric. Looks promising! While it's good to be aware of 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 1 warning sign for Tai Sin Electric you should know about.