It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Mapletree Commercial Trust (SGX:N2IU).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Mapletree Commercial Trust Insider Transactions Over The Last Year
Non-Executive Director Yoon Khong Hiew made the biggest insider purchase in the last 12 months. That single transaction was for S$954k worth of shares at a price of S$1.59 each. That implies that an insider found the current (approximate) price enticing. 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. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Happily, we note that in the last year insiders bought 616.00k shares for a total of S$980k. In total, Mapletree Commercial Trust insiders bought more than they sold over the last year. The average buy price was around S$1.59. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (S$1.69). You can see a visual depiction of insider transactions 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.
Insiders at Mapletree Commercial Trust Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Mapletree Commercial Trust. Lead Independent Director Kim Li Kwa purchased S$26k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Mapletree Commercial Trust Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Mapletree Commercial Trust insiders own 0.2% of the company, worth about S$10m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Mapletree Commercial Trust Insiders?
Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Mapletree Commercial Trust and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Mapletree Commercial Trust, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.