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Insider Buying: The Singapore Technologies Engineering Ltd (SGX:S63) Independent Non-Executive Director Just Bought S$79k Worth Of Shares

Simply Wall St

Whilst it may not be a huge deal, we thought it was good to see that the Singapore Technologies Engineering Ltd (SGX:S63) Independent Non-Executive Director, Chin-Hu Lim, recently bought S$79k worth of stock, for S$3.93 per share. While that isn't the hugest buy, it actually boosted their shareholding by 82%, which is good to see.

View our latest analysis for Singapore Technologies Engineering

Singapore Technologies Engineering Insider Transactions Over The Last Year

Notably, that recent purchase by Chin-Hu Lim is the biggest insider purchase of Singapore Technologies Engineering shares that we've seen in the last year. That means that even when the share price was higher than S$3.92 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Chin-Hu Lim was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SGX:S63 Recent Insider Trading, October 20th 2019

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).

Insider Ownership of Singapore Technologies Engineering

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Singapore Technologies Engineering insiders own 0.5% of the company, worth about S$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Singapore Technologies Engineering Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Singapore Technologies Engineering insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Singapore Technologies Engineering.

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.

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.