Insider Buying: The Enviro-Hub Holdings Ltd. (SGX:L23) Executive Chairman Just Bought S$69k Worth Of Shares

By
Simply Wall St
Published
January 16, 2021

Even if it's not a huge purchase, we think it was good to see that Ah Ng, the Executive Chairman of Enviro-Hub Holdings Ltd. (SGX:L23) recently shelled out S$69k to buy stock, at S$0.099 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Enviro-Hub Holdings

Enviro-Hub Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Ah Ng was the biggest purchase of Enviro-Hub Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of S$0.094. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ah Ng was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SGX:L23 Insider Trading Volume January 17th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Enviro-Hub Holdings insiders own 66% of the company, worth about S$77m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Enviro-Hub Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Enviro-Hub Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enviro-Hub Holdings. To help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Enviro-Hub Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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