Dyna-Mac Holdings' Market Cap Up S$47m Following Year Of Insider Stock Buying \

Dyna-Mac Holdings Ltd. (SGX:NO4) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a S$47m addition to the company’s market value. Put another way, the original S$196k acquisition is now worth S$345k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Dyna-Mac Holdings

Dyna-Mac Holdings Insider Transactions Over The Last Year

The CEO & Executive Chairman Ah Cheng Lim made the biggest insider purchase in the last 12 months. That single transaction was for S$94k worth of shares at a price of S$0.19 each. We do like to see buying, but this purchase was made at well below the current price of S$0.29. 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.

In the last twelve months Dyna-Mac Holdings insiders were buying shares, but not selling. Their average price was about S$0.17. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Dyna-Mac Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Dyna-Mac Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Based on our data, Dyna-Mac Holdings insiders have about 1.7% of the stock, worth approximately S$5.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Dyna-Mac Holdings Tell Us?

The fact that there have been no Dyna-Mac Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Dyna-Mac Holdings stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Dyna-Mac Holdings has 1 warning sign and it would be unwise to ignore this.

Of course Dyna-Mac Holdings 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, but not derivative transactions.

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

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.