Insider Stock Buying Reaches US$41.7m On Wilmar International

Multiple insiders secured a larger position in Wilmar International Limited (SGX:F34) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Wilmar International

Wilmar International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder Khoon Hong Kuok for S$10m worth of shares, at about S$3.23 per share. So it's clear an insider wanted to buy, at around the current price, which is S$3.25. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Wilmar International share holders is that insiders were buying at near the current price.

While Wilmar International insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Wilmar International Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Wilmar International. Overall, two insiders shelled out S$6.0m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Wilmar International

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. We usually like to see fairly high levels of insider ownership. Wilmar International insiders own 7.2% of the company, currently worth about S$1.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Wilmar International Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Wilmar International. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wilmar International. Case in point: We've spotted 2 warning signs for Wilmar International you should be aware of, and 1 of these is significant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.