Insiders who bought S$48.1m worth of Beng Soon Machinery Holdings Limited (HKG:1987) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. However, total losses seen by insiders are still S$25m since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Beng Soon Machinery Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Director Ling Ling Tang for HK$38m worth of shares, at about HK$1.00 per share. That means that an insider was happy to buy shares at above the current price of HK$0.27. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Beng Soon Machinery Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around HK$0.56. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Beng Soon Machinery Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Beng Soon Machinery Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Beng Soon Machinery Holdings insiders own 59% of the company, currently worth about HK$157m 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.
What Might The Insider Transactions At Beng Soon Machinery Holdings Tell Us?
The fact that there have been no Beng Soon Machinery Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Beng Soon Machinery Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beng Soon Machinery Holdings. For example - Beng Soon Machinery Holdings has 2 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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