We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Cache Logistics Trust (SGX:K2LU).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Cache Logistics Trust Insider Transactions Over The Last Year
Chairman of the Board at ARA Trust Management (Cache) Limited How Teck Lim made the biggest insider purchase in the last 12 months. That single transaction was for S$144k worth of shares at a price of S$0.72 each. That means that an insider was happy to buy shares at around the current price of S$0.72. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Cache Logistics Trust insider decided to buy shares at close to current prices. How Teck Lim was the only individual insider to buy shares in the last twelve months.
How Teck Lim purchased 400.00k shares over the year. The average price per share was S$0.72. 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 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).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Cache Logistics Trust insiders own 0.8% of the company, worth about S$6.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Cache Logistics Trust Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cache Logistics Trust insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Cache Logistics Trust.
Of course Cache Logistics 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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