Insider Buys Additional US$81k In Singapore Shipping Stock
Whilst it may not be a huge deal, we thought it was good to see that the Singapore Shipping Corporation Limited (SGX:S19) Executive Chairman, Chio Kiat Ow, recently bought S$81k worth of stock, for S$0.29 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Singapore Shipping Insider Transactions Over The Last Year
Notably, that recent purchase by Chio Kiat Ow is the biggest insider purchase of Singapore Shipping shares that we've seen in the last year. That implies that an insider found the current price of S$0.29 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Happily, the Singapore Shipping insider decided to buy shares at close to current prices. Chio Kiat Ow was the only individual insider to buy shares in the last twelve months.
Chio Kiat Ow bought a total of 1.32m shares over the year at an average price of S$0.21. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Singapore Shipping
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.
Insider Ownership Of Singapore Shipping
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Singapore Shipping insiders own 53% of the company, currently worth about S$62m based on the recent share price. 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 Singapore Shipping Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Singapore Shipping. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Singapore Shipping. In terms of investment risks, we've identified 2 warning signs with Singapore Shipping and understanding these should be part of your investment process.
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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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.