Insiders who bought Riverstone Holdings Limited (SGX:AP4) in the last 12 months may probably not pay attention to the stock's recent 5.8% drop. After taking the recent loss into consideration, the RM1.7m worth of stock they bought is now worth RM2.4m, indicating that their investment yielded a positive return.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Riverstone Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Teek Son Wong bought S$423k worth of shares at a price of S$0.71 per share. We do like to see buying, but this purchase was made at well below the current price of S$0.98. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Teek Son Wong bought 2.49m shares over the last 12 months at an average price of S$0.68. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Riverstone Holdings insiders own about S$941m worth of shares (which is 65% 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.
What Might The Insider Transactions At Riverstone Holdings Tell Us?
The fact that there have been no Riverstone Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Riverstone Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Riverstone Holdings. At Simply Wall St, we've found that Riverstone Holdings has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
But note: Riverstone Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.