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From what we can see, insiders were net buyers in Tai Sin Electric Limited's (SGX:500 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
View our latest analysis for Tai Sin Electric
Tai Sin Electric Insider Transactions Over The Last Year
The CEO & Executive Director Boon Hock Lim made the biggest insider purchase in the last 12 months. That single transaction was for S$472k worth of shares at a price of S$0.40 each. That implies that an insider found the current price of S$0.41 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Tai Sin Electric share holders is that an insider was buying at near the current price. Boon Hock Lim was the only individual insider to buy shares in the last twelve months.
Boon Hock Lim purchased 1.63m shares over the year. The average price per share was S$0.40. The chart below shows insider transactions (by companies and individuals) over the last year. 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 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.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Tai Sin Electric insiders own 65% of the company, worth about S$121m. 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 Tai Sin Electric Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Tai Sin Electric shares in the last quarter. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Tai Sin Electric has 1 warning sign and it would be unwise to ignore it.