Whilst it may not be a huge deal, we thought it was good to see that the Tye Soon Limited (SGX:BFU) MD & Executive Director, Tek Yew Chong, recently bought S$50k worth of stock, for S$0.40 per share. However, it only increased their shares held by 3.4%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Tye Soon

Tye Soon Insider Transactions Over The Last Year

Notably, that recent purchase by MD & Executive Director Tek Yew Chong was not the only time they bought Tye Soon shares this year. Earlier in the year, they paid S$0.40 per share in a S$60k purchase. That means that an insider was happy to buy shares at around the current price of S$0.40. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Tek Yew Chong was the only individual insider to buy shares in the last twelve months.

Tek Yew Chong purchased 739.40k shares over the year. The average price per share was S$0.40. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Tye Soon insiders own 23% of the company, worth about S$8.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tye Soon Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Tye Soon we think they are probably pretty confident of a bright future. 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. When we did our research, we found 3 warning signs for Tye Soon (1 can't be ignored!) that we believe deserve your full attention.

Of course Tye Soon 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.