Tue. Nov 29th, 2022

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Grand Venture Technology Limited’s (SGX:JLB) instance, it’s good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Grand Venture Technology

Grand Venture Technology Insider Transactions Over The Last Year

There wasn’t any very large single transaction over the last year, but we can still observe some trading.

In the last twelve months Grand Venture Technology insiders were buying shares, but not selling. The average buy price was around S$0.93. I’d consider this a positive as it suggests insiders see value at around the current price, which is S$0.52. 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!

insider-trading-volume

insider-trading-volume

Grand Venture Technology 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.

Grand Venture Technology Insiders Bought Stock Recently

Over the last three months, we’ve seen a bit of insider buying at Grand Venture Technology. Executive Deputy Chairman Tiam Nam Lee bought S$20k worth of shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 34% of Grand Venture Technology shares, worth about S$59m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Grand Venture Technology Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Grand Venture Technology and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Grand Venture Technology. Be aware that Grand Venture Technology is showing 2 warning signs in our investment analysis, and 1 of those is significant…

But note: Grand Venture Technology 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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