Nam Cheong Chief Executive Officer Acquires 1.9% More Stock

Investors who take an interest in Nam Cheong Limited (SGX:1MZ) should definitely note that the Chief Executive Officer, Seng Keat Leong, recently paid S$0.72 per share to buy S$199k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.9%.

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Nam Cheong Insider Transactions Over The Last Year

In fact, the recent purchase by Seng Keat Leong was the biggest purchase of Nam Cheong shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of S$0.77 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Nam Cheong share holders is that insiders were buying at near the current price.

While Nam Cheong insiders bought shares during the last year, they didn't sell. Their average price was about S$0.65. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Nam Cheong

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Insider Ownership Of Nam Cheong

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 Nam Cheong insiders own 37% of the company, worth about S$113m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Nam Cheong Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Nam Cheong. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nam Cheong. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Nam Cheong.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.