We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Thai Beverage Public Company Limited (SGX:Y92), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
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, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Thai Beverage
In the last twelve months, the biggest single purchase by an insider was when Chief of Route-to-Market Ueychai Tantha-Obhas bought S$126k worth of shares at a price of S$0.74 per share. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term. The only individual insider to buy over the last year was Ueychai Tantha-Obhas.
Ueychai Tantha-Obhas bought 370.00k shares over the last 12 months at an average price of S$0.67. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Thai Beverage is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Thai Beverage insiders own 5.2% of the company, currently worth about S$764m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Thai Beverage Insiders?
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 Thai Beverage insiders are well aligned, and quite possibly think the share price is too low. Nice! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Thai Beverage.
But note: Thai Beverage 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.
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 firstname.lastname@example.org.