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Multiple insiders secured a larger position in Wilmar International Limited (SGX:F34) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Wilmar International
Wilmar International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Khoon Hong Kuok for S$15m worth of shares, at about S$3.69 per share. That means that even when the share price was higher than S$3.07 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 23.21m shares worth S$80m. But they sold 476.00k shares for S$1.7m. In total, Wilmar International insiders bought more than they sold over 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!
Wilmar International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Wilmar International Insiders Bought Stock Recently
It's good to see that Wilmar International insiders have made notable investments in the company's shares. Overall, three insiders shelled out S$10m for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wilmar International insiders own about S$1.4b worth of shares (which is 7.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.