BHG Retail REIT (SGX:BMGU) shareholders (or potential shareholders) will be happy to see that insider Chongyu Zhang recently bought a whopping S$14m worth of stock, at a price of S$0.65. That purchase boosted their holding by 86%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
BHG Retail REIT Insider Transactions Over The Last Year
In fact, the recent purchase by Chongyu Zhang was the biggest purchase of BHG Retail REIT shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of S$0.69 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the BHG Retail REIT insider decided to buy shares at close to current prices. Chongyu Zhang was the only individual insider to buy over the year.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
BHG Retail REIT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does BHG Retail REIT Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. BHG Retail REIT insiders own about S$80m worth of shares. That equates to 23% 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 BHG Retail REIT Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest BHG Retail REIT insiders are well aligned, and that they may think the share price is too low. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course BHG Retail REIT 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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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