Have Insiders Been Selling F J Benjamin Holdings Ltd (SGX:F10) Shares This Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in F J Benjamin Holdings Ltd (SGX:F10).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for F J Benjamin Holdings

F J Benjamin Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Eng Hock Lim, for S$136k worth of shares, at about S$0.02 per share. So what is clear is that an insider saw fit to sell at around the current price of S$0.018. While insider selling is a negative, to us, it is more negative if the shares are sold 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. The only individual insider seller over the last year was Eng Hock Lim.

Happily, we note that in the last year insiders paid S$23k for 1.25m shares. On the other hand they divested 14.83m shares, for S$285k. Eng Hock Lim sold a total of 14.83m shares over the year at an average price of S$0.019. 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 36% of F J Benjamin Holdings shares, worth about S$6.0m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The F J Benjamin Holdings Insider Transactions Indicate?

The fact that there have been no F J Benjamin Holdings insider transactions recently certainly doesn't bother us. Still, the insider transactions at F J Benjamin Holdings in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for F J Benjamin Holdings and we suggest you have a look.

Of course F J Benjamin Holdings 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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