From what we can see, insiders were net buyers in Hafary Holdings Limited's (SGX:5VS ) 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, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Hafary Holdings
The Last 12 Months Of Insider Transactions At Hafary Holdings
Over the last year, we can see that the biggest insider purchase was by Non-Independent Non-Executive Director See Ching Low for S$6.6m worth of shares, at about S$0.18 per share. So it's clear an insider wanted to buy, at around the current price, which is S$0.19. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Hafary Holdings share holders is that an insider was buying at near the current price. See Ching Low was the only individual insider to buy during the last year.
See Ching Low bought a total of 39.88m shares over the year at an average price of S$0.19. 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!
Hafary Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hafary Holdings insiders own about S$34m worth of shares (which is 41% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Hafary Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Hafary Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hafary Holdings. For example, Hafary Holdings has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.