Three Stocks Insiders Are Buying

Generally, insiders buying more shares in their own firm sends a bullish signal. A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%. Though it is certainly not sufficient to base your investment decision merely on these signals alone, below I’ve put together three stocks you should examine further.

Wilmar International Limited (SGX:F34)

Wilmar International Limited operates as an agribusiness company in the People’s Republic of China and internationally. Started in 1991, and now led by CEO Khoon Kuok, the company provides employment to 90,000 people and with the stock’s market cap sitting at SGD SGD20.62B, it comes under the large-cap stocks category.

Wilmar International Limited’s (SGX:F34) insiders have invested more than 1 million shares in the large-cap stocks within the past three months. In total, individual insiders own over 485 million shares in the business, which makes up around 7.66% of total shares outstanding. The insider that recently bought more shares is Khoon Kuok (management and board member) . The entity that bought on the open market in the last three months was Hong Lee Holdings Pte Ltd HPR investments Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider. With a relatively flat forecasted top-line, but a robust earnings growth rate of 10.01% per year for the five years, insiders may have strong conviction in management’s cost initiatives moving forward. This underlying driver of growth could be one of the reasons why insiders have bought more shares over the past couple of months. Interested in Wilmar International? Find out more here.

SGX:F34 Insider_trading Jun 14th 18
SGX:F34 Insider_trading Jun 14th 18

Yanlord Land Group Limited (SGX:Z25)

Yanlord Land Group Limited, an investment holding company, engages in the property development activities in the People’s Republic of China. Yanlord Land Group was established in 1993 and with the company’s market capitalisation at SGD SGD3.30B, we can put it in the mid-cap group.

Yanlord Land Group Limited’s (SGX:Z25) insiders have invested more than 15 million shares in the large-cap stocks within the past three months. In total, individual insiders own over 1 billion shares in the business, which makes up around 70.41% of total shares outstanding. The insider that recently bought more shares is Sheng Zhong (management and board member) . With a relatively flat top-line forecasted for the upcoming year, but a robust earnings growth rate of 19.18%, insiders may have strong conviction in management’s cost initiatives moving forward. This underlying driver of growth could be one of the reasons why insiders have bought more shares over the past couple of months. Dig deeper into Yanlord Land Group here.

SGX:Z25 Insider_trading Jun 14th 18
SGX:Z25 Insider_trading Jun 14th 18

Best World International Limited (SGX:CGN)

Best World International Limited develops, manufactures, and distributes skincare, personal care, nutritional, and wellness products. Best World International was founded in 1990 and has a market cap of SGD SGD681.44M, putting it in the small-cap stocks category.

Best World International Limited’s (SGX:CGN) insiders have invested 700,000 shares in the small-cap stocks within the past three months. In total, individual insiders own over 102 million shares in the business, which makes up around 18.61% of total shares outstanding. Insiders that have recently ramped up their holdings are: Beng Mui Hoan (management and board member) . and Nee Tan (management and board member) . On average, analysts expect a robust revenue growth of 16.15% per year for the next five years, which will drive the meaningful bottom-line growth of 16.49%. CGN’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. Dig deeper into Best World International here.

SGX:CGN Insider_trading Jun 14th 18
SGX:CGN Insider_trading Jun 14th 18

For more stocks with high, positive trading volume by insiders, explore this interactive list of stocks with recent insider buying.