Even if it's not a huge purchase, we think it was good to see that Hock Chye Lim, the CEO & Executive Director of Hosen Group Ltd. (Catalist:5EV) recently shelled out S$70k to buy stock, at S$0.04 per share. That purchase might not be huge but it did increase their holding by 25%.
See our latest analysis for Hosen Group
Hosen Group Insider Transactions Over The Last Year
In fact, the recent purchase by Hock Chye Lim was the biggest purchase of Hosen Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is S$0.042. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Hock Chye Lim was the only individual insider to buy shares in the last twelve months.
Hock Chye Lim purchased 2.23m shares over the year. The average price per share was S$0.04. 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!
Hosen Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Hosen Group insiders own 56% of the company, worth about S$7.7m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Hosen Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hosen Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hosen Group. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Hosen Group.