Founder & Executive Chairman of Soon Hock Enterprise Holding Picks Up 1.4% More Stock
Those following along with Soon Hock Enterprise Holding Limited (SGX:SHE) will no doubt be intrigued by the recent purchase of shares by Yeow Khoon Tan, Founder & Executive Chairman of the company, who spent a stonking S$1.9m on stock at an average price of S$0.58. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.4%.
The Last 12 Months Of Insider Transactions At Soon Hock Enterprise Holding
Notably, that recent purchase by Founder & Executive Chairman Yeow Khoon Tan was not the only time they bought Soon Hock Enterprise Holding shares this year. They previously made an even bigger purchase of S$2.3m worth of shares at a price of S$0.59 per share. That means that an insider was happy to buy shares at above the current price of S$0.58. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Soon Hock Enterprise Holding insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Soon Hock Enterprise Holding
Soon Hock Enterprise Holding is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Soon Hock Enterprise Holding insiders own about S$143m worth of shares (which is 79% of the company). 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 Soon Hock Enterprise Holding Insiders?
The recent insider purchases are heartening. 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 Soon Hock Enterprise Holding. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Soon Hock Enterprise Holding has 2 warning signs and it would be unwise to ignore them.
But note: Soon Hock Enterprise Holding 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.