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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of iFAST Corporation Ltd. (SGX:AIY), that sends out a positive message to the company's shareholders.
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.
View our latest analysis for iFAST
The Last 12 Months Of Insider Transactions At iFAST
In the last twelve months, the biggest single purchase by an insider was when Non-Independent Non-Executive Director Wee Kian Lim bought S$216k worth of shares at a price of S$3.81 per share. We do like to see buying, but this purchase was made at well below the current price of S$4.60. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
iFAST insiders may have bought shares in the last year, but they didn't sell any. 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.
iFAST Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at iFAST. Specifically, Executive Chairman & CEO Chung Chun Lim bought S$170k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of iFAST
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. iFAST insiders own 30% of the company, currently worth about S$402m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The iFAST Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about iFAST. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - iFAST has 2 warning signs we think you should be aware of.