Whilst it may not be a huge deal, we thought it was good to see that the PropNex Limited (SGX:OYY) Co-Founder, Mohamed Ismail Gafoore, recently bought S$133k worth of stock, for S$0.52 per share. However, we do note that it only increased their holding by 0.8%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for PropNex

The Last 12 Months Of Insider Transactions At PropNex

Notably, that recent purchase by Co-Founder Mohamed Ismail Gafoore was not the only time they bought PropNex shares this year. They previously made an even bigger purchase of S$212k worth of shares at a price of S$0.51 per share. That means that even when the share price was higher than S$0.50 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

PropNex insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

PropNex 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.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that PropNex insiders own 22% of the company, worth about S$41m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About PropNex Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of PropNex we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with PropNex and understanding these should be part of your investment process.