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Wilmar International Limited (SGX:F34) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Khoon Hong Kuok, recently bought a whopping S$1.8m worth of stock, at a price of S$3.08. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.1%.
View our latest analysis for Wilmar International
The Last 12 Months Of Insider Transactions At Wilmar International
In fact, the recent purchase by Co-Founder Khoon Hong Kuok was not their only acquisition of Wilmar International shares this year. They previously made an even bigger purchase of S$10m worth of shares at a price of S$3.23 per share. That means that even when the share price was higher than S$3.06 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 13.24m shares for S$43m. But insiders sold 476.00k shares worth S$1.7m. Overall, Wilmar International insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Wilmar International 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 Of Wilmar International
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Wilmar International insiders own 7.1% of the company, currently worth about S$1.3b 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.
What Might The Insider Transactions At Wilmar International Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Wilmar International insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Wilmar International.