Investors who take an interest in PEC Ltd. (SGX:IX2) should definitely note that the Executive Chairman, Poh Thim Ko, recently paid S$0.59 per share to buy S$236k worth of the stock. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At PEC
Notably, that recent purchase by Poh Thim Ko is the biggest insider purchase of PEC shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is S$0.60. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for PEC share holders is that insiders were buying at near the current price.
PEC insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
PEC is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of PEC
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that PEC insiders own 37% of the company, worth about S$57m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About PEC Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in PEC shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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