Did Vibrant Group Limited (SGX:BIP) Insiders Sell Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Vibrant Group Limited (SGX:BIP).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Vibrant Group

The Last 12 Months Of Insider Transactions At Vibrant Group

The CEO & Executive Director, Kian Keong Khua, made the biggest insider sale in the last 12 months. That single transaction was for S$3.0m worth of shares at a price of S$0.10 each. That means that an insider was selling shares at below the current price (S$0.10). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 46% of Kian Keong Khua's holding. The only individual insider seller over the last year was Kian Keong Khua. Notably Kian Keong Khua was also the biggest buyer, having purchased S$464k worth of shares.

Kian Keong Khua ditched 58.34m shares over the year. The average price per share was S$0.062. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at Vibrant Group Have Bought Stock Recently

It's good to see that Vibrant Group insiders have made notable investments in the company's shares. Specifically, CEO & Executive Director Kian Keong Khua bought S$79k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership of Vibrant Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Vibrant Group shares, worth about S$8.8m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Vibrant Group Insiders?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for Vibrant Group (1 is significant) you should be aware of.

But note: Vibrant Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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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