Yahoo Finance A-Smart Holdings Insiders Placed Bullish Bets Worth S$12.6m
Multiple insiders secured a larger position in A-Smart Holdings Ltd. (SGX:BQC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for A-Smart Holdings
The Last 12 Months Of Insider Transactions At A-Smart Holdings
The insider Hong Leong Oei made the biggest insider purchase in the last 12 months. That single transaction was for S$5.4m worth of shares at a price of S$0.18 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
A-Smart Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about S$0.12 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
A-Smart Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At A-Smart Holdings Have Bought Stock Recently
Over the last quarter, A-Smart Holdings insiders have spent a meaningful amount on shares. Overall, four insiders shelled out S$7.2m for shares in the company -- and none sold. This makes one think the business has some good points.
Does A-Smart Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. A-Smart Holdings insiders own 77% of the company, currently worth about S$21m 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 A-Smart Holdings Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest A-Smart Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. Be aware that A-Smart Holdings is showing 3 warning signs in our investment analysis, and 2 of those don't sit too well with us...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
