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Looking at Raffles Medical Group Ltd's (SGX:BSL ) 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Raffles Medical Group
The Last 12 Months Of Insider Transactions At Raffles Medical Group
Over the last year, we can see that the biggest insider purchase was by Executive Chairman & CEO Choon Yong Loo for S$372k worth of shares, at about S$1.24 per share. Even though the purchase was made at a significantly lower price than the recent price (S$1.46), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Choon Yong Loo bought a total of 353.80k shares over the year at an average price of S$1.23. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Raffles Medical Group
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Raffles Medical Group insiders own 13% of the company, worth about S$347m. 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 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. Judging from their transactions, and high insider ownership, Raffles Medical Group insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Raffles Medical Group (1 makes us a bit uncomfortable) you should be aware of.