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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Tai Sin Electric Limited (SGX:500), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Tai Sin Electric
Tai Sin Electric Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Boon Hock Lim bought S$186k worth of shares at a price of S$0.40 per share. That means that even when the share price was higher than S$0.39 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Tai Sin Electric insiders were buying shares, but not selling. 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!
Tai Sin Electric 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 Of Tai Sin Electric
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tai Sin Electric insiders own about S$116m worth of shares (which is 66% of the company). 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 Does This Data Suggest About Tai Sin Electric Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Tai Sin Electric insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tai Sin Electric. Every company has risks, and we've spotted 2 warning signs for Tai Sin Electric you should know about.