Have Insiders Been Buying Singapore Exchange Limited (SGX:S68) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Singapore Exchange Limited (SGX:S68), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Singapore Exchange

The Last 12 Months Of Insider Transactions At Singapore Exchange

In the last twelve months, the biggest single purchase by an insider was when Non-Executive & Independent Director Chin-Hu Lim bought S$127k worth of shares at a price of S$8.44 per share. That means that an insider was happy to buy shares at around the current price of S$10.00. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Singapore Exchange share holders is that an insider was buying at near the current price. Chin-Hu Lim was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Singapore Exchange Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Singapore Exchange insiders own 0.3% of the company, worth about S$36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Singapore Exchange Insiders?

It doesn't really mean much that no insider has traded Singapore Exchange shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Singapore Exchange and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Singapore Exchange.

But note: Singapore Exchange may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.
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