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Looking at LHT Holdings Limited's (SGX:BEI ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for LHT Holdings
The Last 12 Months Of Insider Transactions At LHT Holdings
In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Mui Kee Yap bought S$115k worth of shares at a price of S$1.07 per share. That means that even when the share price was higher than S$0.90 (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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Mui Kee Yap.
Mui Kee Yap purchased 1.12m shares over the year. The average price per share was S$1.05. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
LHT Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of LHT Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. LHT Holdings insiders own 57% of the company, currently worth about S$27m 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 LHT Holdings Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like LHT Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LHT Holdings. Every company has risks, and we've spotted 3 warning signs for LHT Holdings you should know about.