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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$3.6m on stock at an average price of S$1.03. While that only increased their holding size by 1.7%, it is still a big swing by our standards.
See our latest analysis for Raffles Medical Group
The Last 12 Months Of Insider Transactions At Raffles Medical Group
Notably, that recent purchase by Choon Yong Loo is the biggest insider purchase of Raffles Medical Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$1.02). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Choon Yong Loo was the only individual insider to buy shares in the last twelve months.
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!
Raffles Medical Group is not the only stock insiders are buying. So take a peek at this free list of growing 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. Raffles Medical Group insiders own about S$242m worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Raffles Medical Group Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Raffles Medical Group. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Raffles Medical Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.