$IFAST CORPORATION LTD.(AIY.SI)$
Singapore Stock Market May Extend Tuesday's Gains
The Singapore stock market has moved higher in two of three trading days since the end of the seven-day losing streak in which it had slumped more than 135 points or 4.4 percent. The Straits Times Index now rests just beneath the 3,120-point plateau and it's looking at another green light for Wednesday's trade.
The global forecast for the Asian markets is upbeat, with oil, telecom and technology stocks expected to lead the way. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.
iFAST Corporation Ltd.(SGX:AIY) fell 2.89% to $4.03 on Tuesday
Over the past year, insiders sold S$533k worth ofiFAST Corporation Ltd.(SGX:AIY) stock at an average price of S$8.31 per share allowing them to get the most out of their money. The company's market valuation decreased by S$120m after the stock price dropped 8.7% over the past week, but insiders were spared from painful losses.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At iFAST
The insider, Loh Ken Ng, made the biggest insider sale in the last 12 months. That single transaction was for S$336k worth of shares at a price of S$8.18 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is S$4.31. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Loh Ken Ng.
In the last twelve months insiders purchased 70.00k shares for S$392k. But they sold 64.10k shares for S$533k. Loh Ken Ng sold a total of 64.10k shares over the year at an average price of S$8.31. 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!
SGX:AIY Insider Trading Volume June 14th 2022
If you like to buy stocks that insiders are buying, rather than selling, then you might just love thisfreelist of companies. (Hint: insiders have been buying them).
Insiders at iFAST Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at iFAST. Specifically, Independent Director Chee Wai Kok bought S$94k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
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's great to see that iFAST insiders own 29% of the company, worth about S$371m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The iFAST Insider Transactions Indicate?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that iFAST insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that iFAST has2 warning signsand it would be unwise to ignore them.
But note:iFAST may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with high ROE and low debt.
source:SIMPLY WALLST
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