When a lone insider buys stock, it’s usually not a big deal. However, when multiple insiders buy shares, as in Grand Venture Technology Limited (SGX:JLB) is good news for shareholders.
While insider transactions aren’t the most important thing when it comes to long-term investing, logically you should pay attention to whether insiders are buying or selling stocks.
Check out our latest analysis for Grand Venture Technology
Grand Venture Technology insider deals over the past year
There hasn’t been a very large single transaction in the last year, but we can still see some trading.
Over the past 12 months, insiders have bought, but not sold, shares of Grand Venture Technology. The average purchase price was around S$0.93. I would view this as a positive as it suggests insiders are seeing value around the current price which is S$0.52. The chart below shows insider transactions (of companies and individuals) over the last year. If you click on the chart you will see all the individual transactions including the stock price, the individual and the date!
Grand Venture Technology isn’t the only stock insiders are buying. For those who like to find win investments This free List of growing companies with recent insider purchases might be just the ticket.
Grand Venture Technology insiders recently bought shares
Over the past three months, we’ve seen some insider buying at Grand Venture Technology. Executive Vice President Tiam Nam Lee bought S$20,000 worth of shares during this period. It’s good to see insiders buying and the lack of new sellers. But in this case, the amount purchased means that the last transaction might not be very meaningful on its own.
Another way to test the consistency between a company’s executives and other shareholders is to look at how many shares they own. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company over the long term. Insiders own 34% of shares in Grand Venture Technology, valued at approximately S$59 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to indicate an alignment between insiders and the other shareholders.
So what do Grand Venture Technology’s insider transactions reveal?
We note that there has been some insider buying (but no selling) recently. However, the purchases were not large. But insiders have shown more appetite for the stock over the past year. Insiders own shares in Grand Venture Technology, and we don’t see any signs that they’re worried about the future. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks Grand Venture Technology faces. Be aware that Grand Venture Technology will be on display 2 warning signs in our investment analysisand 1 of them is significant…
But beware: Grand Venture Technology might not be the best stock to buy. So check this out free List of interesting companies with high ROE and low leverage.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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