Even if it's not a huge purchase, we think it was good to see that Eng Hong Lim, the Founder of Avi-Tech Holdings Limited (SGX:1R6) recently shelled out S$89k to buy stock, at S$0.25 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Avi-Tech Holdings
Avi-Tech Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Eng Hong Lim was the biggest purchase of Avi-Tech Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is S$0.25. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Avi-Tech Holdings insider decided to buy shares at close to current prices. Eng Hong Lim was the only individual insider to buy during the last year.
Eng Hong Lim bought a total of 578.30k shares over the year at an average price of S$0.25. 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!
Avi-Tech 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 Of Avi-Tech Holdings
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. Avi-Tech Holdings insiders own 46% of the company, currently worth about S$20m 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 Do The Avi-Tech Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Avi-Tech Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avi-Tech Holdings. When we did our research, we found 3 warning signs for Avi-Tech Holdings (2 are a bit unpleasant!) that we believe deserve your full attention.
But note: Avi-Tech Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.