Insider Buying: Eng Lim Just Spent S$245k On Thomson Medical Group Limited (SGX:A50) Shares
Investors who take an interest in Thomson Medical Group Limited (SGX:A50) should definitely note that insider Eng Lim recently paid S$0.045 per share to buy S$245k 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 Thomson Medical Group
Thomson Medical Group Insider Transactions Over The Last Year
In fact, the recent purchase by Eng Lim was the biggest purchase of Thomson Medical Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of S$0.054 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Eng Lim was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Thomson Medical Group
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. Thomson Medical Group insiders own about S$1.3b worth of shares (which is 89% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Thomson Medical Group Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Thomson Medical Group insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Thomson Medical Group. When we did our research, we found 4 warning signs for Thomson Medical Group (2 can't be ignored!) that we believe deserve your full attention.
Of course Thomson Medical Group 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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