Yahoo Finance Executive Chairman of Nam Cheong Picks Up 2,687% More Stock
Those following along with Nam Cheong Limited (SGX:1MZ) will no doubt be intrigued by the recent purchase of shares by Su Tiong, Executive Chairman of the company, who spent a stonking S$8.7m on stock at an average price of S$0.07. That purchase boosted their holding by 2,687%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Check out our latest analysis for Nam Cheong
The Last 12 Months Of Insider Transactions At Nam Cheong
In fact, the recent purchase by Su Tiong was the biggest purchase of Nam Cheong shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of S$0.19. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 33% of Nam Cheong shares, worth about S$25m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Nam Cheong Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Nam Cheong shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Nam Cheong has 5 warning signs (and 4 which make us uncomfortable) we think 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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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.
