Have AEM Holdings Insiders Been Selling Stock?
Some AEM Holdings Ltd. (SGX:AWX) shareholders may be a little concerned to see that the Lead Independent Non-Executive Director, Ban Leng Toh, recently sold a substantial S$5.3m worth of stock at a price of S$10.64 per share. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.
AEM Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Non-Independent Non-Executive Director, Yean Hung Chok, sold S$6.6m worth of shares at a price of S$9.43 per share. That means that even when the share price was below the current price of S$9.85, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 64% of Yean Hung Chok's holding.
AEM Holdings insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for AEM Holdings
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does AEM Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that AEM Holdings insiders own 7.2% of the company, worth about S$228m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About AEM Holdings Insiders?
Insiders haven't bought AEM Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, AEM Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AEM Holdings. At Simply Wall St, we found 2 warning signs for AEM Holdings that deserve your attention before buying any shares.
But note: AEM Holdings 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.