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From what we can see, insiders were net buyers in Raffles Medical Group Ltd's (SGX:BSL ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Raffles Medical Group
The Last 12 Months Of Insider Transactions At Raffles Medical Group
The Executive Chairman & CEO Choon Yong Loo made the biggest insider purchase in the last 12 months. That single transaction was for S$1.5m worth of shares at a price of S$0.89 each. That means that an insider was happy to buy shares at around the current price of S$0.97. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Raffles Medical Group insider decided to buy shares at close to current prices. Choon Yong Loo was the only individual insider to buy during the last year.
Choon Yong Loo purchased 34.12m shares over the year. The average price per share was S$0.95. 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!
Raffles Medical Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Raffles Medical Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Raffles Medical Group insiders own 15% of the company, worth about S$278m. 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 Raffles Medical Group Insider Transactions Indicate?
The fact that there have been no Raffles Medical Group 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 Raffles Medical Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Raffles Medical Group.