Potential USP Group Limited (SGX:BRS) shareholders may wish to note that insider King Anne Lee recently bought S$396k worth of stock, paying S$0.22 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 25%.
The Last 12 Months Of Insider Transactions At USP Group
Over the last year, we can see that the biggest insider purchase was by Executive Director & CEO Sau Ian Tanoto for S$3.1m worth of shares, at about S$0.24 per share. That means that an insider was happy to buy shares at above the current price of S$0.078. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 19.60m shares worth S$3.9m. But insiders sold 9900000 shares worth S$1.4m. In total, USP Group insiders bought more than they sold over the last year. They paid about S$0.20 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
USP Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of USP Group
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. USP Group insiders own about S$5.8m worth of shares (which is 83% of the company). 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 USP Group Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about USP Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing USP Group. For instance, we've identified 4 warning signs for USP Group (3 don't sit too well with us) you should be aware of.
But note: USP Group 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.
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