When a single insider buys stock, it’s usually smooth sailing. But when a significant number of insiders buy shares, of EnGro Corporation Limited For (SGX:S44), this is great news for shareholders.
I don’t think shareholders should simply follow insider trading, but logically they should pay attention to whether insiders are buying or selling shares.
Check out EnGro’s latest analysis
Insider trading at EnGro in the last 12 months
Insider Wee Chua made the largest insider purchase in the last 12 months. This single transaction of his was S$1.30 per share and he was S$192,000 worth of shares. This means that the insider was willing to buy the shares at a price higher than his current price of S$1.05. It is very likely that they regret the purchase, but they are also likely to be bullish on the company. . If they paid more than the current price, it’s generally more encouraging because it suggests they found value at a higher level as well.
EnGro insiders bought shares last year but did not sell them. Below is a visual depiction of insider trading (by companies and individuals) over the last 12 months. If you want to know exactly who sold, how much and when, click the chart below.
EnGro isn’t the only stock that insiders are buying.For those who like to search investment win this freedom A list of growing companies that recently made insider acquisitions could be just the ticket.
Does EnGro boast high insider ownership?
Another way to test the alignment of company leaders with other shareholders is to look at the number of shares they own. We usually want to see a pretty high level of insider ownership. The insider owns his 16% stake in EnGro, worth around S$20 million. While this is a strong level of insider ownership, it is not an outstanding level, but it is sufficient to indicate some alignment between management and minority shareholders.
So what does this data tell us about EnGro Insiders?
It doesn’t make much sense that insiders didn’t trade EnGro stock last quarter. On the bright side, last year’s deal is encouraging. Overall, I don’t see anything that makes EnGro insiders suspicious of the company, and they have a stake. We want to know what’s going on with insider ownership and trading, but we also try to consider the risks facing the stock before making any investment decision.Every business has risks and we found it EnGro’s Five Warning Signs (one of which is involved!) you need to know about.
However, please note the following: EnGro may not be the best stock to buy. Now take a look at this freedom A list of interesting companies with high ROE and low debt.
For the purposes of this article, an insider is an individual who reports a transaction to the relevant regulatory body. Currently, we consider open market transactions and private disposals, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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