Have Insiders Been Buying Jadason Enterprises Ltd (SGX:J03) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. 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 shareholders might well want to know whether insiders have been buying or selling shares in Jadason Enterprises Ltd (SGX:J03).

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 don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.

See our latest analysis for Jadason Enterprises

The Last 12 Months Of Insider Transactions At Jadason Enterprises

In the last twelve months, the biggest single purchase by an insider was when insider Hin Hao Liaw bought S$2.4b worth of shares at a price of S$6,346 per share. That means that an insider was happy to buy shares at above the current price of S$0.028. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hin Hao Liaw was the only individual insider to buy during the last year. We note that Hin Hao Liaw was both the biggest buyer and the biggest seller.

Hin Hao Liaw bought a total of 7.36m shares over the year at an average price of S$329. 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!

Jadason Enterprises 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.

Does Jadason Enterprises Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jadason Enterprises insiders own about S$10m worth of shares (which is 53% of the company). 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 Jadason Enterprises Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. 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 Jadason Enterprises insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jadason Enterprises. Case in point: We've spotted 1 warning sign for Jadason Enterprises you should be aware of.

Of course Jadason Enterprises 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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