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Insiders were net buyers of Stamford Tyres Corporation Limited's (SGX:S29 ) 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.
Stamford Tyres Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Wai Ying Wee for S$498k worth of shares, at about S$0.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.20). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Wai Ying Wee was the only individual insider to buy shares in the last twelve months.
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!
See our latest analysis for Stamford Tyres
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 Stamford Tyres
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Stamford Tyres shares, worth about S$9.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Stamford Tyres Tell Us?
It doesn't really mean much that no insider has traded Stamford Tyres shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Stamford Tyres and we see no evidence to suggest they are worried about 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 that end, you should learn about the 4 warning signs we've spotted with Stamford Tyres (including 1 which shouldn't be ignored).