Multiple insiders secured a larger position in Top Glove Corporation Bhd.( KLSE:TOPGLOV ) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Top Glove Corporation Bhd
The Last 12 Months Of Insider Transactions At Top Glove Corporation Bhd
Over the last year, we can see that the biggest insider purchase was by Executive Director Hooi Sin Lim for RM3.7m worth of shares, at about RM0.90 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of RM1.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Top Glove Corporation Bhd insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do notwant to miss this free list of undervalued small cap companies that insiders are buying.
Does Top Glove Corporation Bhd Boast High 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. Top Glove Corporation Bhd insiders own 30% of the company, currently worth about RM2.7b based on the recent share price. 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 Top Glove Corporation Bhd Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Top Glove Corporation Bhd insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Top Glove Corporation Bhd, you should check out this free report on analyst forecasts for the company .
Of course Top Glove Corporation Bhd 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
