Insider Buying: The Kingsmen Creatives Ltd. (SGX:5MZ) Co-Founder & Deputy Executive Chairman Just Bought 6.0% More Shares

Even if it's not a huge purchase, we think it was good to see that Chin Sim Ong, the Co-Founder & Deputy Executive Chairman of Kingsmen Creatives Ltd. (SGX:5MZ) recently shelled out S$120k to buy stock, at S$0.24 per share. However, it only increased their shares held by 6.0%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Kingsmen Creatives

Kingsmen Creatives Insider Transactions Over The Last Year

Notably, that recent purchase by Chin Sim Ong is the biggest insider purchase of Kingsmen Creatives shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of S$0.24. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Chin Sim Ong was the only individual insider to buy during the last year.

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!

Kingsmen Creatives is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Kingsmen Creatives

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. Insiders own 22% of Kingsmen Creatives shares, worth about S$11m. 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 Kingsmen Creatives Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Kingsmen Creatives we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kingsmen Creatives. When we did our research, we found 2 warning signs for Kingsmen Creatives (1 is a bit concerning!) that we believe deserve your full attention.

Of course Kingsmen Creatives 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, but not derivative transactions.

If you decide to trade Kingsmen Creatives, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.