Insiders Re-Evaluate Their S$663.0k Stock Purchase As Travelite Holdings Falls To S$13m

Insiders who bought S$663.0k worth of Travelite Holdings Ltd.'s (SGX:BCZ) stock at an average buy price of S$0.16 over the last year may be disappointed by the recent 10.0% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth S$574.3k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Travelite Holdings Insider Transactions Over The Last Year

The Executive Chairman Teck Jong Thang made the biggest insider purchase in the last 12 months. That single transaction was for S$155k worth of shares at a price of S$0.15 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Teck Jong Thang was the only individual insider to buy shares in the last twelve months.

Teck Jong Thang purchased 4.25m shares over the year. The average price per share was S$0.16. 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!

Check out our latest analysis for Travelite Holdings

Travelite Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Travelite Holdings insiders own 77% of the company, currently worth about S$9.9m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Travelite Holdings Tell Us?

It doesn't really mean much that no insider has traded Travelite Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Travelite Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Travelite Holdings (including 2 which are a bit unpleasant).

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 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.