It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mapletree Industrial Trust's (SGX:ME8U) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Mapletree Industrial Trust Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non Executive Director of Mapletree Industrial Trust Management Ltd. Tiow Chye Chua for S$519k worth of shares, at about S$2.62 per share. That means that an insider was happy to buy shares at above the current price of S$2.20. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Mapletree Industrial Trust insiders may have bought shares in the last year, but they didn't sell any. 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!
Mapletree Industrial Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Mapletree Industrial Trust Insiders Bought Stock Recently
Over the last quarter, Mapletree Industrial Trust insiders have spent a meaningful amount on shares. Non-Executive Chairman of Mapletree Industrial Trust Management Ltd. Kim Teck Cheah spent S$247k on stock, and there wasn't any selling. This makes one think the business has some good points.
Does Mapletree Industrial Trust Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Mapletree Industrial Trust insiders own 0.2% of the company, worth about S$12m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Mapletree Industrial Trust Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Mapletree Industrial Trust shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Mapletree Industrial Trust you should be aware of, and 1 of these can't be ignored.
Of course Mapletree Industrial Trust 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, but not derivative transactions.
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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.
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