Insiders of Tuas Limited (ASX:TUA) are up 162% on their S$769k purchase after Tuas Limited (ASX:TUA) rose 13% last week

Insiders who bought Tuas Limited (ASX:TUA) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$93m as a result of the stock's 13% gain over the same period. Put another way, the original S$769k acquisition is now worth S$2.0m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Tuas

The Last 12 Months Of Insider Transactions At Tuas

The Non-Executive Director Robert Millner made the biggest insider purchase in the last 12 months. That single transaction was for AU$669k worth of shares at a price of AU$0.68 each. Even though the purchase was made at a significantly lower price than the recent price (AU$1.75), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Tuas insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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!

Tuas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Tuas insiders own 37% of the company, worth about AU$300m. 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 Tuas Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Tuas insiders feel good about the company's future. 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. For example, Tuas has 3 warning signs (and 2 which are a bit concerning) we think you should know about.

But note: Tuas 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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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