Chip Eng Seng Corporation Ltd (SGX:C29) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Celine Tang, recently bought a whopping S$73m worth of stock, at a price of S$0.63. That purchase boosted their holding by 68%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Chip Eng Seng Insider Transactions Over The Last Year
In fact, the recent purchase by Celine Tang was the biggest purchase of Chip Eng Seng shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of S$0.62. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid S$76m for 120754653 shares. On the other hand they divested 90000 shares, for S$72k. In total, Chip Eng Seng insiders bought more than they sold over the last year. 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!
Chip Eng Seng is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Chip Eng Seng 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. Chip Eng Seng insiders own about S$138m worth of shares (which is 30% 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.
What Might The Insider Transactions At Chip Eng Seng Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Chip Eng Seng insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course Chip Eng Seng 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.