Investors who take an interest in Best World International Limited (SGX:CGN) should definitely note that insider Seow Yuen Ng recently paid S$1.98 per share to buy S$133k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Best World International
Best World International Insider Transactions Over The Last Year
In fact, the recent purchase by Seow Yuen Ng was the biggest purchase of Best World International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of S$2.08. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Best World International insider decided to buy shares at close to current prices. Seow Yuen Ng was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Best World International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Best World International Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Best World International insiders own about S$226m worth of shares (which is 25% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Best World International 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 Best World International. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Best World International. Every company has risks, and we've spotted 1 warning sign for Best World International you should know about.
But note: Best World International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
