Insider Buys Additional S$81k In Plato Capital Stock
Even if it's not a huge purchase, we think it was good to see that Kian Lim, the Non-Executive Non-Independent Chairman of Plato Capital Limited (Catalist:YYN) recently shelled out S$81k to buy stock, at S$1.91 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.
View our latest analysis for Plato Capital
The Last 12 Months Of Insider Transactions At Plato Capital
Notably, that recent purchase by Kian Lim is the biggest insider purchase of Plato Capital shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$2.00). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. Kian Lim was the only individual insider to buy during the last year.
Kian Lim bought 48.40k shares over the last 12 months at an average price of S$1.98. 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!
Plato Capital is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Plato Capital Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Plato Capital insiders own 84% of the company, worth about S$20m. 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 Does This Data Suggest About Plato Capital Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Plato Capital. 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. Be aware that Plato Capital is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...
Of course Plato Capital 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.