We'd be surprised if Forise International Limited (SGX:8A1) shareholders haven't noticed that an insider, E-Ming Ng, recently sold S$658k worth of stock at S$0.14 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Forise International

The Last 12 Months Of Insider Transactions At Forise International

The Executive Director Peng Weile Leo made the biggest insider purchase in the last 12 months. That single transaction was for S$1.6m worth of shares at a price of S$0.13 each. That means that even when the share price was higher than S$0.12 (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. 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. Peng Weile Leo was the only individual insider to buy shares in the last twelve months.

Over the last year we saw more insider selling of Forise International shares, than buying. 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!

I will like Forise International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Forise International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Forise International insiders own 57% of the company, currently worth about S$2.9m based on the recent share price. 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 Does This Data Suggest About Forise International Insiders?

An insider hasn't bought Forise International stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Be aware that Forise International is showing 5 warning signs in our investment analysis, and 3 of those are a bit unpleasant...

Of course Forise International 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.

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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.