Bullish GSH Insiders Rewarded As Their Investment Rises To S$1.3m

Insiders who bought GSH Corporation Limited (SGX:BDX) stock in the last 12 months were richly rewarded last week. The company's market value increased by S$73m as a result of the stock's 22% gain over the same period. In other words, the original S$1.0m purchase is now worth S$1.3m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for GSH

GSH Insider Transactions Over The Last Year

The Executive Chairman Seng Hui Goi made the biggest insider purchase in the last 12 months. That single transaction was for S$173k worth of shares at a price of S$0.16 each. We do like to see buying, but this purchase was made at well below the current price of S$0.20. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Seng Hui Goi bought 6.47m shares over the last 12 months at an average price of S$0.16. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. GSH insiders own about S$294m worth of shares (which is 73% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The GSH Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like GSH insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GSH. Every company has risks, and we've spotted 2 warning signs for GSH you should know about.

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 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.