It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Rex International Holding Limited's (SGX:5WH) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Rex International Holding
The Last 12 Months Of Insider Transactions At Rex International Holding
While no particular insider transaction stood out, we can still look at the overall trading.
Happily, we note that in the last year insiders paid S$130k for 528.00k shares. But insiders sold 200.00k shares worth S$65k. In the last twelve months there was more buying than selling by Rex International Holding insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Rex International Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Rex International Holding Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Rex International Holding insiders own 45% of the company, currently worth about S$127m based on the recent share price. 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 Rex International Holding Insiders?
It doesn't really mean much that no insider has traded Rex International Holding shares in the last quarter. 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 Rex International Holding insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rex International Holding. At Simply Wall St, we've found that Rex International Holding has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.