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$1.02. While that only increased their holding size by 0.8%, it is still a big swing by our standards.
Raffles Medical Group Insider Transactions Over The Last Year
Notably, that recent purchase by Choon Yong Loo is the biggest insider purchase of Raffles Medical Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of S$1.05. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Raffles Medical Group share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 7.25m shares for S$6.2m. But they sold 10.00k shares for S$8.0k. In total, Raffles Medical Group insiders bought more than they sold over the last year. They paid about S$0.86 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
Raffles Medical Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Raffles Medical Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Raffles Medical Group insiders own about S$240m worth of shares (which is 12% 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 Raffles Medical Group Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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. One for the watchlist, at least! While we like knowing 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. While conducting our analysis, we found that Raffles Medical Group has 3 warning signs and it would be unwise to ignore them.
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, but not derivative transactions.
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