Suntec Real Estate Investment Trust Insiders Placed Bullish Bets Worth S$8.6m

In the last year, multiple insiders have substantially increased their holdings of Suntec Real Estate Investment Trust (SGX:T82U) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Suntec Real Estate Investment Trust

The Last 12 Months Of Insider Transactions At Suntec Real Estate Investment Trust

The insider Chen Huaidan made the biggest insider purchase in the last 12 months. That single transaction was for S$2.6m worth of shares at a price of S$1.31 each. That means that even when the share price was higher than S$1.30 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Suntec Real Estate Investment Trust insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around S$1.45. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Suntec Real Estate Investment Trust 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Suntec Real Estate Investment Trust insiders own 32% of the company, worth about S$1.2b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Suntec Real Estate Investment Trust Tell Us?

The fact that there have been no Suntec Real Estate Investment Trust insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Suntec Real Estate Investment Trust insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Suntec Real Estate Investment Trust. Every company has risks, and we've spotted 4 warning signs for Suntec Real Estate Investment Trust (of which 2 are a bit unpleasant!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.