Those following along with Raffles Medical Group Ltd (SGX:BSL) will no doubt be intrigued by the recent purchase of shares by Choon Yong Loo, Executive Chairman & CEO of the company, who spent a stonking S$1.5m on stock at an average price of S$0.89. While that only increased their holding size by 0.7%, it is still a big swing by our standards.
Raffles Medical Group Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman & CEO Choon Yong Loo was not the only time they bought Raffles Medical Group shares this year. Earlier in the year, they paid S$1.03 per share in a S$3.6m purchase. That means that an insider was happy to buy shares at above the current price of S$0.91. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Choon Yong Loo was the only individual insider to buy shares in the last twelve months.
Choon Yong Loo bought a total of 41.10m shares over the year at an average price of S$0.99. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Raffles Medical Group insiders own 15% of the company, worth about S$253m. 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 Raffles Medical Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Raffles Medical Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raffles Medical Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Raffles Medical Group.
Of course Raffles Medical Group 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
