Yahoo Finance Bullish TrickleStar Limited (Catalist:CYW) insiders filled their treasuries with US$2.3m worth of stock over last year
Quite a few insiders have dramatically grown their holdings in TrickleStar Limited (Catalist:CYW) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for TrickleStar
TrickleStar Insider Transactions Over The Last Year
The Executive Chairman & CEO Bernard Emby made the biggest insider purchase in the last 12 months. That single transaction was for S$1.5m worth of shares at a price of S$0.20 each. That implies that an insider found the current price of S$0.21 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for TrickleStar share holders is that insiders were buying at near the current price.
TrickleStar insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
TrickleStar is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of TrickleStar
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. TrickleStar insiders own about S$11m worth of shares (which is 62% of the company). 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 TrickleStar Insiders?
The fact that there have been no TrickleStar insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like TrickleStar insiders think the business has merit. 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 TrickleStar (2 are a bit concerning!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.
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