Insiders at Leader Environmental Technologies Limited (SGX:LS9) sold CN¥1.2m worth of stock at an average price of CN¥0.0042 a share over the past year, making the most of their investment. The company’s market cap plunged by S$3.1m after price dropped by 17% last week but insiders were able to limit their loss to an extent.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Leader Environmental Technologies Insider Transactions Over The Last Year
The insider Yi-Dar Teo made the biggest insider purchase in the last 12 months. That single transaction was for S$881k worth of shares at a price of S$0.0042 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.01. 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.
All up, insiders sold more shares in Leader Environmental Technologies than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Leader Environmental Technologies
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Leader Environmental Technologies Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Leader Environmental Technologies. In that time, insiders dumped S$1.2m worth of shares. On the other hand we note insider Yi-Dar Teo bought S$881k worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Does Leader Environmental Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Leader Environmental Technologies insiders own about S$6.3m worth of shares (which is 41% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Leader Environmental Technologies Insiders?
The insider sales have outweighed the insider buying, at Leader Environmental Technologies, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 6 warning signs for Leader Environmental Technologies (2 are a bit concerning) you should be aware of.
Of course Leader Environmental Technologies 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.