We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Genting Singapore Limited (SGX:G13).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Genting Singapore
Over the last year, we can see that the biggest insider sale was by President Hee Teck Tan for S$6.4m worth of shares, at about S$1.30 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is S$1.01. So it may not shed much light on insider confidence at current levels.
Over the last year, we note insiders sold 5.05m shares worth S$6.5m. Over the last year we saw more insider selling of Genting Singapore shares, than buying. The average sell price was around S$1.30. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (S$1.01), so it probably doesn’t tell us a lot about the value on offer today. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Genting Singapore Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of Genting Singapore shares, worth about S$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Genting Singapore Tell Us?
It doesn’t really mean much that no insider has traded Genting Singapore shares in the last quarter. We don’t take much encouragement from the transactions by Genting Singapore insiders. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Genting Singapore, you should check out this free report on analyst forecasts for the company.
But note: Genting Singapore may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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. Thank you for reading.