Whilst it may not be a huge deal, we thought it was good to see that the Noel Gifts International Ltd (SGX:543) Co-Founder, Siu Hong Wong, recently bought S$90k worth of stock, for S$0.35 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Noel Gifts International
Notably, that recent purchase by Siu Hong Wong is the biggest insider purchase of Noel Gifts International shares that we've seen in the last year. That implies that an insider found the current price of S$0.36 per share to be enticing. 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. 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. Happily, the Noel Gifts International insider decided to buy shares at close to current prices. Siu Hong Wong was the only individual insider to buy shares in the last twelve months.
Siu Hong Wong bought 1.11m shares over the last 12 months at an average price of S$0.26. 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!
Noel Gifts International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Noel Gifts International 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. Noel Gifts International insiders own 70% of the company, currently worth about S$26m based on the recent share price. 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 Does This Data Suggest About Noel Gifts International Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Noel Gifts International. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Noel Gifts International (2 are potentially serious!) that we believe deserve your full attention.
Of course Noel Gifts International 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 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.
