Raffles Education Drops To S$0.096, Yet Insiders May Have Sold Too Early
Raffles Education Limited's (SGX:NR7) stock price has dropped 12% in the previous week, but insiders who sold S$283k in stock over the past year have had less luck. Given that the average selling price of S$0.16 is still lower than the current share price, insiders would probably have been better off keeping their shares.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Raffles Education Insider Transactions Over The Last Year
The Independent Non-Executive Director, How Teck Lim, made the biggest insider sale in the last 12 months. That single transaction was for S$88k worth of shares at a price of S$0.18 each. 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$0.096. So it is hard to draw any strong conclusion from it.
In the last year Raffles Education insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Raffles Education
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Have Raffles Education Insiders Traded Recently?
In the last three months company Independent Non-Executive Director Chwee Koh Chua divested S$5.5k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Does Raffles Education Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Raffles Education insiders own 52% of the company, worth about S$91m. 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 Do The Raffles Education Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. While we feel good about high insider ownership of Raffles Education, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Raffles Education that deserve your attention before buying any shares.
Of course Raffles Education may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.