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Those following along with Raffles Medical Group Ltd (SGX:BSL) will no doubt be intrigued by the recent purchase of shares by Choon Yong Loo, Executive Chairman & CEO of the company, who spent a stonking S$1.5m on stock at an average price of S$0.89. While that only increased their holding size by 0.7%, it is still a big swing by our standards.
See our latest analysis for Raffles Medical Group
Raffles Medical Group Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman & CEO Choon Yong Loo was not their only acquisition of Raffles Medical Group shares this year. Earlier in the year, they paid S$1.03 per share in a S$3.6m purchase. That means that even when the share price was higher than S$0.91 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Choon Yong Loo was the only individual insider to buy shares in the last twelve months.
Choon Yong Loo bought 41.10m shares over the last 12 months at an average price of S$0.99. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 undervalued small cap companies that insiders are buying.
Insider Ownership Of Raffles Medical Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Raffles Medical Group insiders own 15% of the company, worth about S$253m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Raffles Medical Group Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Raffles Medical Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raffles Medical Group. While conducting our analysis, we found that Raffles Medical Group has 1 warning sign and it would be unwise to ignore it.