Investors who take an interest in AnnAik Limited (Catalist:A52) should definitely note that insider Kheng Low recently paid S$0.063 per share to buy S$180k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
See our latest analysis for AnnAik
AnnAik Insider Transactions Over The Last Year
The COO & Executive Director Kim Keang Ng made the biggest insider purchase in the last 12 months. That single transaction was for S$280k worth of shares at a price of S$0.064 each. That implies that an insider found the current price of S$0.064 per share to be enticing. 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. 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. Happily, the AnnAik insiders decided to buy shares at close to current prices.
While AnnAik insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
AnnAik 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 AnnAik
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. AnnAik insiders own 63% of the company, currently worth about S$12m 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.
So What Do The AnnAik Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest AnnAik insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. For example, AnnAik has 4 warning signs (and 1 which can't be ignored) we think you should know about.