Keng-Seong Fong Is The Executive Director of PropNex Limited (SGX:OYY) And Just Spent S$121k On Shares

Even if it's not a huge purchase, we think it was good to see that Keng-Seong Fong, the Executive Director of PropNex Limited (SGX:OYY) recently shelled out S$121k to buy stock, at S$0.72 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for PropNex

PropNex Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Director Keng-Seong Fong was not their only acquisition of PropNex shares this year. Earlier in the year, they paid S$0.50 per share in a S$700k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.73. 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.

In the last twelve months PropNex insiders were buying shares, but not selling. 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!

PropNex is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of PropNex

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. PropNex insiders own about S$63m 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's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of PropNex we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PropNex. At Simply Wall St, we've found that PropNex has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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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