How Much Are Keppel DC REIT (SGX:AJBU) Insiders Taking Off The Table?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Keppel DC REIT (SGX:AJBU), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Keppel DC REIT

Keppel DC REIT Insider Transactions Over The Last Year

The insider, Hsien Yang Chua, made the biggest insider sale in the last 12 months. That single transaction was for S$2.1m worth of shares at a price of S$2.97 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is S$2.69. So it may not tell us anything about how insiders feel about the current share price. Hsien Yang Chua was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 19.20k shares for S$45k. On the other hand they divested 700.00k shares, for S$2.1m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Keppel DC REIT

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Keppel DC REIT insiders have about 0.08% of the stock, worth approximately S$3.6m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Keppel DC REIT Tell Us?

It doesn't really mean much that no insider has traded Keppel DC REIT shares in the last quarter. Our analysis of Keppel DC REIT insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. 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 Keppel DC REIT (of which 1 makes us a bit uncomfortable!) 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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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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