Investors who take an interest in Heeton Holdings Limited (SGX:5DP) should definitely note that the Executive Deputy Chairman & Interim CEO, Giap Eng Toh, recently paid S$0.24 per share to buy S$240k worth of the stock. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.
Heeton Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Deputy Chairman & Interim CEO Giap Eng Toh was not their only acquisition of Heeton Holdings shares this year. Earlier in the year, they paid S$0.29 per share in a S$264k purchase. That means that an insider was happy to buy shares at above the current price of S$0.23. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Heeton Holdings insiders bought shares last year, they didn’t sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Heeton Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Heeton Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Heeton Holdings insiders own 27% of the company, worth about S$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Heeton Holdings Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Heeton Holdings insiders are well aligned, and that they may think the share price is too low. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For instance, we’ve identified 5 warning signs for Heeton Holdings (2 can’t be ignored) you should be aware of.
But note: Heeton Holdings 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.
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 email@example.com. 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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