Bullish Mapletree Industrial Trust (SGX:ME8U) insiders filled their treasuries with S$1.3m worth of stock over last year

Simply Wall St
March 17, 2022
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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Mapletree Industrial Trust's (SGX:ME8U) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Mapletree Industrial Trust

Mapletree Industrial Trust Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non Executive Director of Mapletree Industrial Trust Management Ltd. Tiow Chye Chua for S$519k worth of shares, at about S$2.62 per share. That implies that an insider found the current price of S$2.64 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Mapletree Industrial Trust insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SGX:ME8U Insider Trading Volume March 17th 2022

Mapletree Industrial Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Mapletree Industrial Trust Insiders Bought Stock Recently

Over the last quarter, Mapletree Industrial Trust insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought S$1.0m worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership of Mapletree Industrial Trust

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Mapletree Industrial Trust insiders own about S$12m worth of shares (which is 0.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Mapletree Industrial Trust Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Mapletree Industrial Trust shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Mapletree Industrial Trust (1 makes us a bit uncomfortable) you should be aware of.

Of course Mapletree Industrial Trust may not be the best stock to buy. So you may wish to see this free collection of high quality 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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