Anyone interested in StarHub Ltd (SGX:CC3) should probably be aware that the Lead Independent Director, Nihal Vijaya Devadas Kaviratne, recently divested S$151k worth of shares in the company, at an average price of S$1.42 each. Equally important, that sale actually reduced their holding by a full 70.3% which hardly makes us feel bullish about the stock.
Check out our latest analysis for StarHub
StarHub Insider Transactions Over The Last Year
Notably, that recent sale by Nihal Vijaya Devadas Kaviratne is the biggest insider sale of StarHub shares that we’ve seen in the last year. So we know that an insider sold shares at around the present share price of S$1.36. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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. Our data indicates that StarHub insiders own about S$12m worth of shares (which is 0.5% of the company). But they may have an indirect interest through a corporate structure that we haven’t picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The StarHub Insider Transactions Indicate?
An insider hasn’t bought StarHub stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.