Insiders of Forise International Limited (SGX:8A1) are up 0.0003% on their S$1.5m purchase after Forise International Limited (SGX:8A1) rose 29% last week

Last week, Forise International Limited (SGX:8A1) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 29% last week, resulting in a S$1.6m increase in the company's market worth. In other words, the original S$1.5m purchase is now worth S$1.5m.

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 Forise International

The Last 12 Months Of Insider Transactions At Forise International

Notably, that recent purchase by Kui Lian Goh is the biggest insider purchase of Forise International shares that we've seen in the last year. That implies that an insider found the current price of S$0.17 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Forise International insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid S$1.5m for 8.72m shares. But insiders sold 6.43m shares worth S$901k. Overall, Forise International insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Forise International Have Bought Stock Recently

It's good to see that Forise International insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought S$1.5m worth of shares. This makes one think the business has some good points.

Does Forise International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Forise International insiders own 50% of the company, currently worth about S$3.6m 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 Does This Data Suggest About Forise International Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Forise International insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Forise International. For example, Forise International has 4 warning signs (and 3 which are a bit concerning) we think you should know about.

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.

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