Potential Baker Technology Limited (SGX:BTP) shareholders may wish to note that the Executive Director, Benety Chang, recently bought S$141k worth of stock, paying S$0.30 for each share. Although the purchase only increased their holding by 0.4%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Baker Technology
Notably, that recent purchase by Benety Chang is the biggest insider purchase of Baker Technology shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of S$0.30. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Benety Chang was the only individual insider to buy shares in the last twelve months.
Benety Chang purchased 595.80k shares over the year. The average price per share was S$0.30. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Baker Technology Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Baker Technology insiders own 62% of the company, currently worth about S$37m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Baker Technology Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Baker Technology. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Baker Technology (1 makes us a bit uncomfortable) you should be aware of.
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, but not derivative transactions.
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