Insiders were net buyers of Kori Holdings Limited's (Catalist:5VC ) stock during the past year. That is, insiders bought more stock than they sold.
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.
Check out our latest analysis for Kori Holdings
The Last 12 Months Of Insider Transactions At Kori Holdings
Over the last year, we can see that the biggest insider purchase was by insider Tiang-Ann Foo for S$189k worth of shares, at about S$0.15 per share. That means that an insider was happy to buy shares at around the current price of S$0.16. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Kori Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Tiang-Ann Foo.
Tiang-Ann Foo purchased 1.94m shares over the year. The average price per share was S$0.16. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Kori Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Kori Holdings insiders own 66% of the company, worth about S$10m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Kori Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kori Holdings. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Kori Holdings (1 makes us a bit uncomfortable) you should be aware of.