Stock Analysis

Insiders who bought Raffles Medical Group Ltd (SGX:BSL) last year must be regretting not buying more as market cap hits S$2.7b

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Last week, Raffles Medical Group Ltd (SGX:BSL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 3.6% last week, resulting in a S$93m increase in the company's market worth. As a result, their original purchase of S$435k worth of stock is now worth S$506k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Raffles Medical Group

The Last 12 Months Of Insider Transactions At Raffles Medical Group

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & CEO Choon Yong Loo for S$372k worth of shares, at about S$1.24 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$1.43. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Choon Yong Loo bought 353.80k shares over the last 12 months at an average price of S$1.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SGX:BSL Insider Trading Volume March 24th 2023

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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$337m worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Raffles Medical Group Tell Us?

The fact that there have been no Raffles Medical Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Raffles Medical Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 2 warning signs for Raffles Medical Group (of which 1 shouldn't be ignored!) you should know about.

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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