Insider Buying: The Tai Sin Electric Limited (SGX:500) CEO & Executive Director Just Bought 1.0% More Shares

Investors who take an interest in Tai Sin Electric Limited (SGX:500) should definitely note that the CEO & Executive Director, Boon Hock Lim, recently paid S$0.33 per share to buy S$248k worth of the stock. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.

See our latest analysis for Tai Sin Electric

The Last 12 Months Of Insider Transactions At Tai Sin Electric

Notably, that recent purchase by CEO & Executive Director Boon Hock Lim was not the only time they bought Tai Sin Electric shares this year. They previously made an even bigger purchase of S$263k worth of shares at a price of S$0.31 per share. So it's clear an insider wanted to buy, at around the current price, which is S$0.33. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Tai Sin Electric insiders decided to buy shares at close to current prices.

In the last twelve months Tai Sin Electric 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Tai Sin Electric

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tai Sin Electric insiders own 62% of the company, currently worth about S$92m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tai Sin Electric 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tai Sin Electric. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Tai Sin Electric (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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. 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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