We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Mapletree Logistics Trust (SGX:M44U).
Do Insider Transactions Matter?
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.
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. 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.’
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Mapletree Logistics Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director of Mapletree Logistics Trust Management Ltd. Yoon Khong Hiew for S$123k worth of shares, at about S$1.32 per share. That means that an insider was happy to buy shares at around the current price. 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 generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
In the last twelve months insiders purchased 173.64k shares for S$220k. But they sold 80.00k for S$96k. Overall, Mapletree Logistics Trust insiders were net buyers last year. Their average price was about S$1.27. Although they bought at below the recent price of S$1.45 per share, it is good to see that insiders are willing to invest in the company. 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!
Mapletree Logistics Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Mapletree Logistics Trust Have Bought Stock Recently
Over the last quarter, Mapletree Logistics Trust insiders have spent a meaningful amount on shares. We can see that Yoon Khong Hiew paid S$123k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Mapletree Logistics Trust insiders own about S$17m worth of shares. That equates to 0.3% of the company. 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 Does This Data Suggest About Mapletree Logistics Trust Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Mapletree Logistics Trust 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 Mapletree Logistics Trust.
But note: Mapletree Logistics Trust 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.
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