EC World Real Estate Investment Trust (SGX:BWCU) Insiders Have Been Selling
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in EC World Real Estate Investment Trust (SGX:BWCU).
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, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for EC World Real Estate Investment Trust
EC World Real Estate Investment Trust Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Yuqing Hu sold S$2.2m worth of shares at a price of S$0.73 per share. That means that even when the share price was slightly below the current price of S$0.74, an insider wanted to cash in some shares. While their view may have changed since they sold, this isn’t a particularly bullish sign. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. It is worth noting that this sale was only 6.2% of Yuqing Hu’s holding. The only individual insider seller over the last year was Yuqing Hu.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that EC World Real Estate Investment Trust insiders own 6.1% of the company, worth about S$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About EC World Real Estate Investment Trust Insiders?
It doesn’t really mean much that no insider has traded EC World Real Estate Investment Trust shares in the last quarter. We don’t take much encouragement from the transactions by EC World Real Estate Investment Trust insiders. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for EC World Real Estate Investment Trust.
Of course EC World Real Estate Investment Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.
