A S$8.2m Market Cap Boost Pleasing ToXMH Holdings Insiders

XMH Holdings Ltd. (SGX:BQF) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a S$8.2m addition to the company’s market value. As a result, the stock they originally bought for S$690.0k is now worth S$1.17m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for XMH Holdings

The Last 12 Months Of Insider Transactions At XMH Holdings

Notably, that recent purchase by Chairman & MD Tin Yeow Tan was not the only time they bought XMH Holdings shares this year. They previously made an even bigger purchase of S$191k worth of shares at a price of S$0.45 per share. Even though the purchase was made at a significantly lower price than the recent price (S$0.77), 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.

Tin Yeow Tan bought 1.52m shares over the last 12 months at an average price of S$0.45. 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 undervalued small cap companies that insiders are buying.

Insider Ownership Of XMH Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that XMH Holdings insiders own 98% of the company, worth about S$83m. 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 Does This Data Suggest About XMH Holdings Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about XMH Holdings. Nice! 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 3 warning signs for XMH Holdings (1 doesn't sit too well with us) you should be aware of.

Of course XMH Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.