Hai Leck Holdings Insiders Added S$3.43m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Hai Leck Holdings Limited (SGX:BLH) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Hai Leck Holdings

Hai Leck Holdings Insider Transactions Over The Last Year

The Founder Buck Poh Cheng made the biggest insider purchase in the last 12 months. That single transaction was for S$3.4m worth of shares at a price of S$0.38 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.34). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Hai Leck Holdings insiders bought shares during the last year, they didn't sell. 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 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.

Hai Leck Holdings Insiders Bought Stock Recently

It's good to see that Hai Leck Holdings insiders have made notable investments in the company's shares. We can see that Founder Buck Poh Cheng paid S$3.4m for shares in the company. No-one sold. That shows some optimism about the company's future.

Does Hai Leck Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hai Leck Holdings insiders own about S$40m worth of shares (which is 53% of the company). 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 Hai Leck Holdings Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hai Leck Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Hai Leck Holdings has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.

But note: Hai Leck 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 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.