Joint Group MD & Executive Director of QAF Picks Up 11% More Stock

Investors who take an interest in QAF Limited (SGX:Q01) should definitely note that the Joint Group MD & Executive Director, Kejian Lin, recently paid S$0.91 per share to buy S$620k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.

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QAF Insider Transactions Over The Last Year

Notably, that recent purchase by Kejian Lin is the biggest insider purchase of QAF shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is S$0.93. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for QAF share holders is that an insider was buying at near the current price. Kejian Lin was the only individual insider to buy shares in the last twelve months.

Kejian Lin purchased 1.31m shares over the year. The average price per share was S$0.90. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for QAF

QAF 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 Of QAF

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. QAF insiders own about S$280m worth of shares (which is 52% of the company). 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 QAF Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest QAF insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for QAF (1 is concerning) you should be aware of.

But note: QAF may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.