Have Frencken Group Limited (SGX:E28) Insiders Been Selling Their Stock?

We wouldn't blame Frencken Group Limited (SGX:E28) shareholders if they were a little worried about the fact that Mohamad Au, the President & Executive Director recently netted about S$670k selling shares at an average price of S$1.34. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Frencken Group

The Last 12 Months Of Insider Transactions At Frencken Group

In fact, the recent sale by Mohamad Au was the biggest sale of Frencken Group shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of S$1.30. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 400.00k shares worth S$233k. On the other hand they divested 500.00k shares, for S$670k. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Frencken Group insiders own 15% of the company, worth about S$85m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Frencken Group Tell Us?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Frencken Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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 - Frencken Group has 3 warning signs we think you should be aware of.

But note: Frencken Group 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.

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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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