Even if it's not a huge purchase, we think it was good to see that Boon Hock Lim, the CEO & Executive Director of Tai Sin Electric Limited (SGX:500) recently shelled out S$79k to buy stock, at S$0.39 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Tai Sin Electric Insider Transactions Over The Last Year

Notably, that recent purchase by CEO & Executive Director Boon Hock Lim was not the only time they bought Tai Sin Electric shares this year. Earlier in the year, they paid S$0.40 per share in a S$186k purchase. That means that even when the share price was higher than S$0.40 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Tai Sin Electric insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Tai Sin Electric is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tai Sin Electric insiders own 66% of the company, currently worth about S$119m 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.

What Might The Insider Transactions At Tai Sin Electric Tell Us?

It is good to see the recent insider purchase. 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 Tai Sin Electric. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tai Sin Electric. While conducting our analysis, we found that Tai Sin Electric has 1 warning sign and it would be unwise to ignore it.

Of course Tai Sin Electric 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.