Trade Alert: COO and Executive Director of Shinvest Holding Ltd. (SGX: BJW) Eng Thian Teo recently sold shares

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We wouldn’t blame Shinvest Holding Ltd. (SGX:BJW) shareholders if they were a bit concerned that Eng Thian Teo, the COO and Executive Director recently made around S$5.4 million by selling shares at an average price of S$3.50 Singaporeans. Probably the most concerning part of the whole transaction is that the sale amounted to 100% of their entire stake.

Check out our latest analysis for Shinvest Holding

Shinvest holding insider trades over the past year

In fact, the recent sale by Eng Thian Teo was the largest sale of Shinvest Holding shares by an insider in the past twelve months, according to our records. So we know that an insider sold shares at around the current share price of S$3.48. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. Given that the sale took place roughly at current prices, this makes us a little cautious but is hardly a major concern.

You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

SGX: BJW Insider Trading Volume March 17, 2022

I would like Shinvest Holding better if I see big insider buying. In the meantime, watch this free list of growing companies with significant and recent insider buying.

Insider ownership

Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. It’s great to see that Shinvest Holding insiders own 62% of the company, worth around S$65 million. Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

So what do Shinvest Holding’s insider trading indicate?

An insider recently sold shares of Shinvest Holding, but did not buy any. And there have been no purchases to comfort us in the past year. But it is good to see that Shinvest Holding is increasing its profits. The company enjoys strong insider ownership, but we are a little hesitant given the history of stock sales. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. At Simply Wall St, we found that Shinvest Holding has 3 warning signs (1 is potentially serious!) which deserve your attention before going further in your analysis.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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