In This Article:
Viewing insider transactions for IFS Capital Limited's (SGX:I49 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for IFS Capital
The Last 12 Months Of Insider Transactions At IFS Capital
Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Cheng Leong Sim for S$123k worth of shares, at about S$0.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.11). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Cheng Leong Sim was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. 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 that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that IFS Capital insiders own 66% of the company, worth about S$26m. 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?
The fact that there have been no IFS Capital insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like IFS Capital insiders think the business has merit. 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. Case in point: We've spotted 5 warning signs for IFS Capital you should be aware of, and 2 of these are significant.