Arion Entertainment Singapore Limited (Catalist:YYB) shareholders (or potential shareholders) will be happy to see that insider Jiantao Chen recently bought a whopping S$993k worth of stock, at a price of S$0.008. That purchase boosted their holding by 268%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for Arion Entertainment Singapore
The Last 12 Months Of Insider Transactions At Arion Entertainment Singapore
In fact, the recent purchase by Jiantao Chen was the biggest purchase of Arion Entertainment Singapore shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than S$0.007 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
In the last twelve months insiders purchased 255.50m shares for S$1.7m. But they sold 136.00m shares for S$743k. Overall, Arion Entertainment Singapore insiders were net buyers during the last year. They paid about S$0.0067 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
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 Arion Entertainment Singapore
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that Arion Entertainment Singapore insiders own 64% of the company, worth about S$4.8m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Arion Entertainment Singapore Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Arion Entertainment Singapore insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arion Entertainment Singapore. For instance, we've identified 5 warning signs for Arion Entertainment Singapore (4 are potentially serious) you should be aware of.