Insider Buying: Chen Huaidan Just Spent S$2.6m On Suntec Real Estate Investment Trust (SGX:T82U) Shares
Those following along with Suntec Real Estate Investment Trust (SGX:T82U) will no doubt be intrigued by the recent purchase of shares by insider Chen Huaidan, who spent a stonking S$2.6m on stock at an average price of S$1.31. While that only increased their holding size by 1.0%, it is still a big swing by our standards.
See our latest analysis for Suntec Real Estate Investment Trust
Suntec Real Estate Investment Trust Insider Transactions Over The Last Year
The insider, Wai-Wai Chow, made the biggest insider sale in the last 12 months. That single transaction was for S$3.0m worth of shares at a price of S$1.52 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of S$1.37. So it may not shed much light on insider confidence at current levels. Wai-Wai Chow was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid S$6.2m for 4.20m shares. But they sold 2.00m shares for S$3.0m. In total, Suntec Real Estate Investment Trust insiders bought more than they sold over the last year. They paid about S$1.47 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Suntec Real Estate Investment Trust 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Suntec Real Estate Investment Trust insiders own about S$1.1b worth of shares (which is 28% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Suntec Real Estate Investment Trust Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Suntec Real Estate Investment Trust. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Suntec Real Estate Investment Trust you should be aware of, and 2 of them are potentially serious.
Of course Suntec 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.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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