Potential iFAST Corporation Ltd. (SGX:AIY) shareholders may wish to note that the Executive Chairman & CEO, Chung Lim, recently bought S$156k worth of stock, paying S$0.92 for each share. Although the purchase only increased their holding by 0.3%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At iFAST
Notably, that recent purchase by Chung Lim is the biggest insider purchase of iFAST shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of S$0.82. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Chung Lim was the only individual insider to buy over the year.
Chung Lim bought 844.90k shares over the last 12 months at an average price of S$1.01. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
iFAST is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does iFAST Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. iFAST insiders own about S$88m worth of shares. That equates to 37% 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 Do The iFAST Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest iFAST insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing iFAST. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of iFAST.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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