Insider Buying: Tai Sin Electric CEO & Group Executive Director Bought S$89k Of Shares
Even if it's not a huge purchase, we think it was good to see that Boon Hock Lim, the CEO & Group Executive Director of Tai Sin Electric Limited (SGX:500) recently shelled out S$89k to buy stock, at S$0.51 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Tai Sin Electric Insider Transactions Over The Last Year
Notably, that recent purchase by Boon Hock Lim is the biggest insider purchase of Tai Sin Electric shares that we've seen in the last year. That means that even when the share price was higher than S$0.51 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. Boon Hock Lim was the only individual insider to buy during the last year.
Boon Hock Lim bought 509.20k shares over the last 12 months at an average price of S$0.51. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Tai Sin Electric
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Tai Sin Electric Boast High 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. We usually like to see fairly high levels of insider ownership. Tai Sin Electric insiders own about S$153m worth of shares (which is 65% 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 Tai Sin Electric 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tai Sin Electric. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tai Sin Electric. Every company has risks, and we've spotted 3 warning signs for Tai Sin Electric (of which 1 shouldn't be ignored!) you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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