Whilst it may not be a huge deal, we thought it was good to see that the IFS Capital Limited (SGX:I49) Group CEO & Executive Director, Cheng Leong Sim, recently bought S$95k worth of stock, for S$0.13 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 31%.

IFS Capital Insider Transactions Over The Last Year

In fact, the recent purchase by Group CEO & Executive Director Cheng Leong Sim was not their only acquisition of IFS Capital shares this year. Earlier in the year, they paid S$0.11 per share in a S$123k purchase. Even though the purchase was made at a significantly lower price than the recent price (S$0.13), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Cheng Leong Sim bought 2.15m shares over the last 12 months at an average price of S$0.12. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

IFS Capital is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does IFS Capital Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. IFS Capital insiders own about S$32m worth of shares (which is 66% 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 Do The IFS Capital Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about IFS Capital. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with IFS Capital (including 2 which shouldn't be ignored).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.