Insiders who bought Federal International (2000) Ltd (SGX:BDU) in the last 12 months may probably not pay attention to the stock's recent 20% drop. Reason being, despite the recent loss, insiders original purchase value of S$279.8k is now worth S$357.3k.
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.
The Last 12 Months Of Insider Transactions At Federal International (2000)
In the last twelve months, the biggest single purchase by an insider was when insider Yafin Tan bought S$280k worth of shares at a price of S$0.20 per share. Even though the purchase was made at a significantly lower price than the recent price (S$0.26), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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!
View our latest analysis for Federal International (2000)
Federal International (2000) is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Federal International (2000)
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. Federal International (2000) insiders own about S$20m worth of shares (which is 55% 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 Federal International (2000) Insiders?
It doesn't really mean much that no insider has traded Federal International (2000) shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Federal International (2000) insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Federal International (2000). While conducting our analysis, we found that Federal International (2000) has 4 warning signs and it would be unwise to ignore them.
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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