Non-Executive & Non-Independent Chairman Soon Gooi Just Bought A Handful Of Shares In Frencken Group Limited (SGX:E28)

Even if it's not a huge purchase, we think it was good to see that Soon Gooi, the Non-Executive & Non-Independent Chairman of Frencken Group Limited (SGX:E28) recently shelled out S$120k to buy stock, at S$1.20 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Frencken Group

Frencken Group Insider Transactions Over The Last Year

The President & Executive Director, Mohamad Au, made the biggest insider sale in the last 12 months. That single transaction was for S$670k worth of shares at a price of S$1.34 each. So we know that an insider sold shares at around the present share price of S$1.29. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Mohamad Au.

In the last twelve months insiders purchased 500.00k shares for S$353k. But insiders sold 500.00k shares worth S$670k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Frencken Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Frencken Group Boast High Insider Ownership?

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. Insiders own 14% of Frencken Group shares, worth about S$77m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Frencken Group Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Frencken Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frencken Group. In terms of investment risks, we've identified 2 warning signs with Frencken Group and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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