Founder & Chairman of the Board Heng Fai Chan Just Bought A Handful Of Shares In Alset Inc. (NASDAQ:AEI)

Investors who take an interest in Alset Inc. (NASDAQ:AEI) should definitely note that the Founder & Chairman of the Board, Heng Fai Chan, recently paid US$0.19 per share to buy US$111k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Our analysis indicates that AEI is potentially overvalued!

Alset Insider Transactions Over The Last Year

Notably, that recent purchase by Founder & Chairman of the Board Heng Fai Chan was not the only time they bought Alset shares this year. Earlier in the year, they paid US$0.60 per share in a US$4.4m purchase. That means that an insider was happy to buy shares at above the current price of US$0.20. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Heng Fai Chan was the only individual insider to buy shares in the last twelve months.

Heng Fai Chan purchased 17.89m shares over the year. The average price per share was US$0.58. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Alset

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Alset insiders own 55% of the company, worth about US$17m. 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 Alset Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Alset. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alset. Case in point: We've spotted 4 warning signs for Alset you should be aware of, and 2 of these are potentially serious.

Of course Alset 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.