Keep An Eye On Tuan Sing Holdings As Insider Stock Selling Hits S$1.9m

Last week, Tuan Sing Holdings Limited's (SGX:T24) stock jumped 10%, but insiders who sold S$1.9m worth of stock in over the past year are likely to be in a better position. Selling at an average price of S$0.30, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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.

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Tuan Sing Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Wee Meng Koh, for S$1.9m worth of shares, at about S$0.30 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of S$0.27. So it may not tell us anything about how insiders feel about the current share price. Wee Meng Koh was the only individual insider to sell over the last year.

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!

See our latest analysis for Tuan Sing Holdings

I will like Tuan Sing Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.7% of Tuan Sing Holdings shares, worth about S$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tuan Sing Holdings Insider Transactions Indicate?

The fact that there have been no Tuan Sing Holdings insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Tuan Sing Holdings insiders. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Tuan Sing Holdings you should be aware of, and 2 of these are significant.

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.