How Many SPH REIT (SGX:SK6U) Shares Have Insiders Sold, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in SPH REIT (SGX:SK6U).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

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'.

See our latest analysis for SPH REIT

The Last 12 Months Of Insider Transactions At SPH REIT

The Non-Executive & Independent Chairman of SPH REIT Management Pte. Ltd., Horn Kee Leong, made the biggest insider sale in the last 12 months. That single transaction was for S$433k worth of shares at a price of S$0.86 each. So we know that an insider sold shares at around the present share price of S$0.82. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Horn Kee Leong was the only individual insider to sell over the last year. Notably Horn Kee Leong was also the biggest buyer, having purchased S$321k worth of shares.

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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of SPH REIT

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.5% of SPH REIT shares, worth about S$12m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The SPH REIT Insider Transactions Indicate?

It doesn't really mean much that no insider has traded SPH REIT shares in the last quarter. Our analysis of SPH REIT insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk 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. At Simply Wall St, we've found that SPH REIT has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

But note: SPH REIT may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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