Wilmar International Limited (SGX:F34) insider upped their holding by 0.5% earlier this year

Looking at Wilmar International Limited's (SGX:F34 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Wilmar International

The Last 12 Months Of Insider Transactions At Wilmar International

Over the last year, we can see that the biggest insider purchase was by Co-Founder Khoon Hong Kuok for S$8.8m worth of shares, at about S$4.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$3.97). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Khoon Hong Kuok was the only individual insider to buy during the last year.

Khoon Hong Kuok bought a total of 5.69m shares over the year at an average price of S$4.01. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Wilmar International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Wilmar International Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Wilmar International, over the last three months. We can see that Co-Founder Khoon Hong Kuok paid S$11m for shares in the company. But we did see insider selling worth S$2.5m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Wilmar International Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wilmar International insiders own about S$1.6b worth of shares (which is 6.5% 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 Do The Wilmar International Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Wilmar International insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Wilmar International (including 2 which are potentially serious).

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, but not derivative transactions.

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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.