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In the last year, multiple insiders have substantially increased their holdings of LHT Holdings Limited (SGX:BEI) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
LHT Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Non-Independent Director Ruilong Lan for S$9.7m worth of shares, at about S$1.00 per share. That implies that an insider found the current price of S$1.03 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the LHT Holdings insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 10.55m shares for S$11m. On the other hand they divested 9.67m shares, for S$9.7m. In the last twelve months there was more buying than selling by LHT Holdings 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!
View our latest analysis for LHT Holdings
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At LHT Holdings Have Bought Stock Recently
There was some insider buying at LHT Holdings over the last quarter. In total, insiders bought S$9.7m worth of shares in that time. However, insider Kim Sing Tan netted S$9.7m for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
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. It's great to see that LHT Holdings insiders own 57% of the company, worth about S$31m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.