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Looking at Frencken Group Limited's (SGX:E28 ) 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 we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Frencken Group
Frencken Group Insider Transactions Over The Last Year
The Non-Executive & Non-Independent Chairman Soon Gooi made the biggest insider purchase in the last 12 months. That single transaction was for S$93k worth of shares at a price of S$0.92 each. Even though the purchase was made at a significantly lower price than the recent price (S$1.10), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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.
Insider Ownership Of Frencken Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Frencken Group shares, worth about S$64m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Frencken Group Insider Transactions Indicate?
The fact that there have been no Frencken Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Frencken Group insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Frencken Group you should be aware of.
But note: Frencken Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.