Those following along with Suntec Real Estate Investment Trust (SGX:T82U) will no doubt be intrigued by the recent purchase of shares by insider Jialin Tang, who spent a stonking S$2.5m on stock at an average price of S$1.23. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.8%.
Suntec Real Estate Investment Trust Insider Transactions Over The Last Year
In fact, the recent purchase by Jialin Tang was the biggest purchase of Suntec Real Estate Investment Trust shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is S$1.40. 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. Happily, the Suntec Real Estate Investment Trust insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 3.00m shares for S$4.2m. But they sold 221728 shares for S$421k. In the last twelve months there was more buying than selling by Suntec Real Estate Investment Trust insiders. Their average price was about S$1.39. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Suntec Real Estate Investment Trust insiders own 23% of the company, worth about S$906m. 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 Do The Suntec Real Estate Investment Trust Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives 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. For instance, we've identified 6 warning signs for Suntec Real Estate Investment Trust (2 are a bit unpleasant) you should be aware of.
But note: Suntec Real Estate Investment Trust 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.
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.
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.
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