Are Insiders Selling Oceanus Group Limited (SGX:579) Stock?

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 Oceanus Group Limited (SGX:579), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Oceanus Group

The Last 12 Months Of Insider Transactions At Oceanus Group

In the last twelve months, the biggest single sale by an insider was when the insider, Ho Lam Chan, sold S$2.6m worth of shares at a price of S$0.007 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of S$0.066. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 25% of Ho Lam Chan's holding. Ho Lam Chan was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid S$537k for 31.58m shares. But insiders sold 364.51m shares worth S$2.6m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Oceanus Group Insiders Bought Stock Recently

It's good to see that Oceanus Group insiders have made notable investments in the company's shares. In total, insiders bought S$537k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Oceanus Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Oceanus Group insiders own about S$364m worth of shares (which is 24% 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 Oceanus Group Insiders?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Oceanus Group insiders are fairly aligned, and optimistic. While we like knowing 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. Every company has risks, and we've spotted 1 warning sign for Oceanus Group you should know about.

Of course Oceanus Group 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.

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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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