Those following along with Jadason Enterprises Ltd (SGX:J03) will no doubt be intrigued by the recent purchase of shares by insider Hin Hao Liaw, who spent a stonking S$2.4b on stock at an average price of S$6,346. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.6%.
Jadason Enterprises Insider Transactions Over The Last Year
Notably, that recent purchase by Hin Hao Liaw is the biggest insider purchase of Jadason Enterprises shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of S$0.015. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Hin Hao Liaw was the only individual insider to buy over the year. We note that Hin Hao Liaw was also the biggest seller.
Hin Hao Liaw purchased 1.03m shares over the year. The average price per share was S$2,364. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Jadason Enterprises is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Jadason Enterprises Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Jadason Enterprises insiders own 51% of the company, worth about S$5.9m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Jadason Enterprises Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jadason Enterprises. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Jadason Enterprises is showing 3 warning signs in our investment analysis, and 1 of those is significant...
Of course Jadason Enterprises 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.
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.
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