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From what we can see, insiders were net buyers in Olam Group Limited's (SGX:VC2 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Olam Group
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Sunny George Verghese bought S$496k worth of shares at a price of S$0.99 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.98). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Sunny George Verghese was the only individual insider to buy during the last year.
Sunny George Verghese purchased 1.00m shares over the year. The average price per share was S$0.99. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Olam Group
Olam Group 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Olam Group insiders own 4.6% of the company, currently worth about S$168m 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 Do The Olam Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Olam Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Olam Group. When we did our research, we found 5 warning signs for Olam Group (4 are a bit unpleasant!) that we believe deserve your full attention.