Insider Buyers At Intraco Sitting On S$75k Profit

Insiders who bought Intraco Limited (SGX:I06) in the last 12 months may probably not pay attention to the stock's recent 11% drop. Even after accounting for the recent loss, the S$693.0k worth of stock purchased by them is now worth S$768.4k or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Intraco

Intraco Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Lye Mak for S$90k worth of shares, at about S$0.30 per share. So it's clear an insider wanted to buy, at around the current price, which is S$0.32. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Lye Mak was the only individual insider to buy during the last year.

Lye Mak bought 2.40m shares over the last 12 months at an average price of S$0.29. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Intraco

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Intraco insiders own about S$4.7m worth of shares (which is 13% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Intraco Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Intraco stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intraco. Our analysis shows 2 warning signs for Intraco (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course Intraco 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.