Insiders Enjoy S$11m Return After Buying Salt Investments Stock

Insiders who bought Salt Investments Limited (SGX:FQ7) stock lover the last 12 months are probably not as affected by last week’s 25% loss. Reason being, despite the recent loss, insiders original purchase value of S$11.2m is now worth S$22.6m.

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 Salt Investments

Salt Investments Insider Transactions Over The Last Year

The Head of Marine & Offshore Division Tian Lian made the biggest insider purchase in the last 12 months. That single transaction was for S$2.5m worth of shares at a price of S$0.0015 each. We do like to see buying, but this purchase was made at well below the current price of S$0.003. 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.

While Salt Investments insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Salt Investments is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Salt Investments insiders own 52% of the company, worth about S$33m. 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 Salt Investments Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. 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 Salt Investments insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Salt Investments. For instance, we've identified 5 warning signs for Salt Investments (4 can't be ignored) you should be aware of.

Of course Salt Investments may not be the best stock to buy. So you may wish to see this free collection of high quality 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.