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From what we can see, insiders were net buyers in Centurion Corporation Limited's (SGX:OU8 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Centurion
The Last 12 Months Of Insider Transactions At Centurion
Over the last year, we can see that the biggest insider purchase was by Executive Joint Chairman of the Board Kim Kang Loh for S$1.0m worth of shares, at about S$0.40 per share. That means that even when the share price was higher than S$0.35 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Kim Kang Loh.
Kim Kang Loh purchased 6.39m shares over the year. The average price per share was S$0.37. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Centurion 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 Centurion Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Centurion insiders own 21% of the company, worth about S$61m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Centurion Tell Us?
It doesn't really mean much that no insider has traded Centurion shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Centurion insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Centurion. For instance, we've identified 4 warning signs for Centurion (2 are a bit concerning) you should be aware of.