The Non-Executive Director of ARA Trust Management (Suntec) Limited of Suntec Real Estate Investment Trust (SGX:T82U), Wai-Wai Chow, Just Sold 100% Of Their Holding

By
Simply Wall St
Published
December 01, 2021
SGX:T82U
Source: Shutterstock

We wouldn't blame Suntec Real Estate Investment Trust (SGX:T82U) shareholders if they were a little worried about the fact that Wai-Wai Chow, the Non-Executive Director of ARA Trust Management (Suntec) Limited recently netted about S$3.0m selling shares at an average price of S$1.51. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Suntec Real Estate Investment Trust

Suntec Real Estate Investment Trust Insider Transactions Over The Last Year

Notably, that recent sale by Wai-Wai Chow is the biggest insider sale of Suntec Real Estate Investment Trust shares that we've seen in the last year. That means that an insider was selling shares at around the current price of S$1.50. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

insider-trading-volume
SGX:T82U Insider Trading Volume December 1st 2021

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Does Suntec Real Estate Investment Trust Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Suntec Real Estate Investment Trust insiders own 24% of the company, worth about S$1.0b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Suntec Real Estate Investment Trust Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Suntec Real Estate Investment Trust. When we did our research, we found 5 warning signs for Suntec Real Estate Investment Trust (2 shouldn't be ignored!) that we believe deserve your full attention.

Of course Suntec Real Estate Investment 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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