When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like inSingapore Airlines Limited's(SGX:C6L) $SINGAPORE AIRLINES LTD(C6L.SI)$ instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Singapore Airlines
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Lim Huat Seah bought S$157k worth of shares at a price of S$5.07 per share. That means that an insider was happy to buy shares at around the current price of S$5.37. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Singapore Airlines share holders is that insiders were buying at near the current price.
While Singapore Airlines insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SGX:C6L Insider Trading Volume April 12th 2022
There are plenty of other companies that have insiders buying up shares.
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. Singapore Airlines insiders own about S$21m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Singapore Airlines Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Singapore Airlines and their transactions don't cause us concern.
source: https://simplywall.st/
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