Insider Sellers Might Regret Selling Rex International Holding Shares at a Lower Price Than Current Market Value

Even though Rex International Holding Limited (SGX:5WH) has fallen by 10% over the past week , insiders who sold US$1.0m worth of stock over the past year have had less luck. The average selling price of US$0.20 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Rex International Holding

The Last 12 Months Of Insider Transactions At Rex International Holding

In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer, Svein Helge Kjellesvik, sold S$1.0m worth of shares at a price of S$0.20 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (S$0.10). So it is hard to draw any strong conclusion from it. Svein Helge Kjellesvik was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Rex International Holding insiders own about S$62m worth of shares (which is 46% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Rex International Holding Insiders?

The fact that there have been no Rex International Holding insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Rex International Holding, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rex International Holding. At Simply Wall St, we found 1 warning sign for Rex International Holding that deserve your attention before buying any shares.

But note: Rex International Holding 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 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.

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