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Insiders were net buyers of Wilmar International Limited's (SGX:F34 ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Wilmar International
The Last 12 Months Of Insider Transactions At Wilmar International
Over the last year, we can see that the biggest insider purchase was by Co-Founder Khoon Hong Kuok for S$8.8m worth of shares, at about S$4.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$3.83). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Khoon Hong Kuok.
Khoon Hong Kuok purchased 11.06m shares over the year. The average price per share was S$3.96. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Wilmar International 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. Wilmar International insiders own about S$1.6b worth of shares (which is 6.6% of the company). 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 Does This Data Suggest About Wilmar International Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Wilmar International. Looks promising! While we like knowing 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. For example, Wilmar International has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.