Investors who take an interest in Alset Inc. (NASDAQ:AEI) should definitely note that the Founder & Chairman of the Board, Heng Fai Chan, recently paid US$0.19 per share to buy US$111k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Alset
Alset Insider Transactions Over The Last Year
Notably, that recent purchase by Founder & Chairman of the Board Heng Fai Chan was not the only time they bought Alset shares this year. Earlier in the year, they paid US$0.60 per share in a US$4.4m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.20). 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. Heng Fai Chan was the only individual insider to buy shares in the last twelve months.
Heng Fai Chan purchased 17.89m shares over the year. The average price per share was US$0.58. 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 Alset
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Alset insiders own 55% of the company, currently worth about US$17m based on the recent share price. 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 Does This Data Suggest About Alset Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Alset insiders are well aligned, and quite possibly think the share price is too low. 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. For instance, we've identified 4 warning signs for Alset (2 shouldn't be ignored) you should be aware of.