Last week, Hiap Seng Industries Limited's (SGX:1L2) stock jumped 18%, but insiders who sold S$5.6m worth of stock in over the past year are likely to be in a better position. Selling at an average price of S$0.021, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Hiap Seng Industries
Over the last year, we can see that the biggest insider sale was by the insider, Tian Yuan, for S$2.6m worth of shares, at about S$0.026 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of S$0.013. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Tian Yuan.
Tian Yuan ditched 266.00m shares over the year. The average price per share was S$0.021. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Hiap Seng Industries
I will like Hiap Seng Industries better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Hiap Seng Industries
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Hiap Seng Industries insiders own about S$7.9m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Hiap Seng Industries Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Hiap Seng Industries shares in the last quarter. The insider transactions at Hiap Seng Industries are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. While it's good to be aware of 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. At Simply Wall St, we've found that Hiap Seng Industries has 5 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.
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.