From what we can see, insiders were net buyers in Hong Lai Huat Group Limited's (SGX:CTO ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Hong Lai Huat Group
Hong Lai Huat Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Deputy Chairman & Group CEO Bee Huat Ong bought S$264k worth of shares at a price of S$0.066 per share. That means that an insider was happy to buy shares at around the current price of S$0.067. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Bee Huat Ong was the only individual insider to buy during the last year.
Bee Huat Ong purchased 5.00m shares over the year. The average price per share was S$0.067. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Hong Lai Huat 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 Hong Lai Huat Group insiders own 60% of the company, worth about S$21m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Hong Lai Huat Group Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hong Lai Huat Group. One for the watchlist, at least! 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. Every company has risks, and we've spotted 3 warning signs for Hong Lai Huat Group (of which 1 can't be ignored!) you should know about.