Insiders who bought Kingsmen Creatives Ltd. (SGX:5MZ) last year must be regretting not buying more as market cap hits S$59m

By
Simply Wall St
Published
October 14, 2021
SGX:5MZ
Source: Shutterstock

Kingsmen Creatives Ltd. (SGX:5MZ) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a S$7.1m addition to the company’s market value. In other words, the original S$360k purchase is now worth S$435k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Kingsmen Creatives

The Last 12 Months Of Insider Transactions At Kingsmen Creatives

Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Oon Teck Cheng for S$240k worth of shares, at about S$0.24 per share. We do like to see buying, but this purchase was made at well below the current price of S$0.29. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Kingsmen Creatives insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
SGX:5MZ Insider Trading Volume October 14th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Kingsmen Creatives Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of Kingsmen Creatives shares, worth about S$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Kingsmen Creatives Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Kingsmen Creatives and we see no evidence to suggest they are worried about the future. 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. Be aware that Kingsmen Creatives is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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