Even if it's not a huge purchase, we think it was good to see that Yee Lim Ang, the MD & Executive Director of ABR Holdings Limited (SGX:533) recently shelled out S$79k to buy stock, at S$0.63 per share. That might not be a big purchase but it only increased their holding by 0.1%, and could be interpreted as a good sign.

See our latest analysis for ABR Holdings

The Last 12 Months Of Insider Transactions At ABR Holdings

In fact, the recent purchase by MD & Executive Director Yee Lim Ang was not their only acquisition of ABR Holdings shares this year. Earlier in the year, they paid S$0.75 per share in a S$111k purchase. That means that an insider was happy to buy shares at above the current price of S$0.66. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Yee Lim Ang.

Yee Lim Ang bought 407.20k shares over the last 12 months at an average price of S$0.71. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 ABR Holdings

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. ABR Holdings insiders own 56% of the company, currently worth about S$74m based on the recent share price. 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 ABR Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about ABR Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ABR Holdings. To help with this, we've discovered 2 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in ABR Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.