Even if it's not a huge purchase, we think it was good to see that Han Ho, the Alternate Director of First Sponsor Group Limited (SGX:ADN) recently shelled out S$89k to buy stock, at S$1.32 per share. That might not be a big purchase but it only increased their holding by 3.7%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At First Sponsor Group
Notably, that recent purchase by Non-Executive Chairman Han Ho was not the only time they bought First Sponsor Group shares this year. They previously made an even bigger purchase of S$452k worth of shares at a price of S$1.29 per share. So it's clear an insider wanted to buy, at around the current price, which is S$1.32. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months First Sponsor Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
First Sponsor Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of First Sponsor Group
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. First Sponsor Group insiders own about S$40m worth of shares. That equates to 3.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About First Sponsor Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of First Sponsor Group we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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