Investors who take an interest in Credit Bureau Asia Limited (SGX:TCU) should definitely note that the Founder, Chiang Koo, recently paid S$1.20 per share to buy S$334k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Credit Bureau Asia Insider Transactions Over The Last Year
Notably, that recent purchase by Founder Chiang Koo was not the only time they bought Credit Bureau Asia shares this year. Earlier in the year, they paid S$1.40 per share in a S$1.5m purchase. That means that even when the share price was higher than S$1.23 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Chiang Koo was the only individual insider to buy shares in the last twelve months.
Chiang Koo purchased 2.02m shares over the year. The average price per share was S$1.32. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Credit Bureau Asia Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Credit Bureau Asia insiders own 77% of the company, worth about S$218m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Credit Bureau Asia Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Credit Bureau Asia. Nice! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Credit Bureau Asia.
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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