Co-Founder Mohamed Ismail Gafoore Just Bought 1.5% More Shares In PropNex Limited (SGX:OYY)

Potential PropNex Limited (SGX:OYY) shareholders may wish to note that the Co-Founder, Mohamed Ismail Gafoore, recently bought S$389k worth of stock, paying S$0.78 for each share. Although the purchase only increased their holding by 1.5%, it is still a solid purchase in our view.

Check out our latest analysis for PropNex

The Last 12 Months Of Insider Transactions At PropNex

Over the last year, we can see that the biggest insider purchase was by Executive Director Keng-Seong Fong for S$700k worth of shares, at about S$0.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.78. 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.

PropNex insiders may have bought shares in the last year, but they didn't sell any. Their average price was about S$0.56. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of PropNex

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PropNex insiders own about S$67m worth of shares. That equates to 23% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The PropNex Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in PropNex shares, given these transactions (along with notable insider ownership of the company). 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. For example, PropNex has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

Of course PropNex 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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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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