In This Article:
Whilst it may not be a huge deal, we thought it was good to see that the IFS Capital Limited (SGX:I49) Group CEO & Executive Director, Cheng Leong Sim, recently bought S$95k worth of stock, for S$0.13 per share. That purchase might not be huge but it did increase their holding by 31%.
Check out our latest analysis for IFS Capital
IFS Capital Insider Transactions Over The Last Year
Notably, that recent purchase by Group CEO & Executive Director Cheng Leong Sim was not the only time they bought IFS Capital shares this year. Earlier in the year, they paid S$0.11 per share in a S$123k purchase. Even though the purchase was made at a significantly lower price than the recent price (S$0.13), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Cheng Leong Sim bought a total of 2.15m shares over the year at an average price of S$0.12. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
IFS Capital 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. IFS Capital insiders own 66% of the company, currently worth about S$32m based on the recent share price. 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 IFS Capital 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about IFS Capital. 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. Case in point: We've spotted 5 warning signs for IFS Capital you should be aware of, and 2 of them make us uncomfortable.
But note: IFS Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.