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In the last year, multiple insiders have substantially increased their holdings of HG Metal Manufacturing Limited (SGX:BTG) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for HG Metal Manufacturing
HG Metal Manufacturing Insider Transactions Over The Last Year
Notably, that recent purchase by Jun Xue is the biggest insider purchase of HG Metal Manufacturing shares that we've seen in the last year. That implies that an insider found the current price of S$0.29 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for HG Metal Manufacturing share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 25.06m shares worth S$7.0m. But insiders sold 7.54m shares worth S$5.1m. In the last twelve months there was more buying than selling by HG Metal Manufacturing insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
HG Metal Manufacturing is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
HG Metal Manufacturing Insiders Bought Stock Recently
Over the last quarter, HG Metal Manufacturing insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought S$7.0m worth of shares. This could be interpreted as suggesting a positive outlook.
Does HG Metal Manufacturing Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that HG Metal Manufacturing insiders own about S$5.9m worth of shares (which is 13% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.