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Whilst it may not be a huge deal, we thought it was good to see that the Singapore Technologies Engineering Ltd (SGX:S63) Non-Executive & Independent Director, See Tiat Quek, recently bought S$59k worth of stock, for S$3.83 per share. That purchase might not be huge but it did increase their holding by 20%.
View our latest analysis for Singapore Technologies Engineering
The Last 12 Months Of Insider Transactions At Singapore Technologies Engineering
In fact, the recent purchase by See Tiat Quek was the biggest purchase of Singapore Technologies Engineering shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of S$3.78. 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. To us, it’s very important to consider the price insiders pay for 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.
In the last twelve months Singapore Technologies Engineering insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Singapore Technologies Engineering
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Singapore Technologies Engineering insiders own about S$59m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Singapore Technologies Engineering Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Singapore Technologies Engineering we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 2 warning signs for Singapore Technologies Engineering 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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