Tai Sin Electric Insiders May Regret Not Buying More, Market Cap Hits S$295m

Last week, Tai Sin Electric Limited (SGX:500) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a S$28m increase in the company's market worth, implying a 63% gain on their initial purchase. As a result, their original purchase of S$399.8k worth of stock is now worth S$650.7k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Tai Sin Electric

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Boon Hock Lim bought S$316k worth of shares at a price of S$0.40 per share. We do like to see buying, but this purchase was made at well below the current price of S$0.64. 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.

Boon Hock Lim purchased 1.02m shares over the year. The average price per share was S$0.39. 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 Tai Sin Electric

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

Insider Ownership Of Tai Sin Electric

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Tai Sin Electric insiders own 49% of the company, worth about S$145m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Tai Sin Electric Insider Transactions Indicate?

The fact that there have been no Tai Sin Electric insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Tai Sin Electric insiders think the business has merit. While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for Tai Sin Electric and we suggest you have a look.

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 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.