Ah Hua Ng Spends S$86k On Enviro-Hub Holdings Stock

Whilst it may not be a huge deal, we thought it was good to see that the Enviro-Hub Holdings Ltd. (SGX:L23) Executive Chairman, Ah Hua Ng, recently bought S$86k worth of stock, for S$0.027 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Enviro-Hub Holdings

The Last 12 Months Of Insider Transactions At Enviro-Hub Holdings

In fact, the recent purchase by Ah Hua Ng was the biggest purchase of Enviro-Hub Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.027). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Ah Hua Ng was the only individual insider to buy during the last year.

Ah Hua Ng bought 5.80m shares over the last 12 months at an average price of S$0.026. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Enviro-Hub Holdings insiders own 68% of the company, currently worth about S$28m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Enviro-Hub Holdings Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Enviro-Hub Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enviro-Hub Holdings. For example - Enviro-Hub Holdings has 3 warning signs we think you should be aware of.

But note: Enviro-Hub 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 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.