Yahoo Finance Insider Buying: Wilmar International Co-Founder Bought US$3.7m Of Shares
Those following along with Wilmar International Limited (SGX:F34) will no doubt be intrigued by the recent purchase of shares by Khoon Hong Kuok, Co-Founder of the company, who spent a stonking S$3.7m on stock at an average price of S$3.57. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
View our latest analysis for Wilmar International
Wilmar International Insider Transactions Over The Last Year
In fact, the recent purchase by Co-Founder Khoon Hong Kuok was not their only acquisition of Wilmar International shares this year. They previously made an even bigger purchase of S$15m worth of shares at a price of S$3.69 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$3.57). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Khoon Hong Kuok.
Khoon Hong Kuok purchased 17.57m shares over the year. The average price per share was S$3.73. 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 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.
Does Wilmar International Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Wilmar International insiders own 6.7% of the company, currently worth about S$1.5b 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 Does This Data Suggest About Wilmar International Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Wilmar International. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Wilmar International (1 is significant!) that we believe deserve your full attention.
Of course Wilmar International 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.
