Choon Yong Loo Buys Handful Of Shares In Raffles Medical Group

Those following along with Raffles Medical Group Ltd (SGX:BSL) will no doubt be intrigued by the recent purchase of shares by Choon Yong Loo, Executive Chairman & CEO of the company, who spent a stonking S$1.5m on stock at an average price of S$0.89. While that only increased their holding size by 0.7%, it is still a big swing by our standards.

Check out our latest analysis for Raffles Medical Group

Raffles Medical Group Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman & CEO Choon Yong Loo was not the only time they bought Raffles Medical Group shares this year. Earlier in the year, they paid S$1.03 per share in a S$3.6m purchase. That means that an insider was happy to buy shares at above the current price of S$0.91. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Choon Yong Loo.

Choon Yong Loo purchased 41.10m shares over the year. The average price per share was S$0.99. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Raffles Medical Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Raffles Medical Group

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. Raffles Medical Group insiders own 15% of the company, currently worth about S$253m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Raffles Medical Group Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Raffles Medical Group insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of 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. For example - Raffles Medical Group has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.