Possible Signal As LHT Holdings Insiders Sell S$9.5m In Stock
LHT Holdings Limited's (SGX:BEI) stock rose 11% last week, but insiders who sold S$9.5m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of S$0.97, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
LHT Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Mui Kee Yap, for S$9.5m worth of shares, at about S$0.97 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of S$0.81. So it is hard to draw any strong conclusion from it. Mui Kee Yap was the only individual insider to sell over the last year.
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!
Check out our latest analysis for LHT 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).
Insider Ownership Of LHT Holdings
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. It appears that LHT Holdings insiders own 39% of the company, worth about S$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About LHT Holdings Insiders?
It doesn't really mean much that no insider has traded LHT Holdings shares in the last quarter. Still, the insider transactions at LHT Holdings in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LHT Holdings. For example, LHT Holdings has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.
But note: LHT 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.