In the last year, multiple insiders have substantially increased their holdings of Olive Tree Estates Limited (Catalist:1H2) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Olive Tree Estates
Olive Tree Estates Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Kyoo Chul Kim bought S$3.5m worth of shares at a price of S$0.15 per share. That means that an insider was happy to buy shares at above the current price of S$0.092. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Olive Tree Estates insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Olive Tree Estates Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Olive Tree Estates insiders own 54% of the company, currently worth about S$5.8m 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 Olive Tree Estates Insiders?
The fact that there have been no Olive Tree Estates insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Olive Tree Estates insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 4 warning signs with Olive Tree Estates and understanding them should be part of your investment process.