Insiders are probably happy to have sold their shares in iFAST Corporation Ltd. (SGX: AIY) after an 8.7% decline

Over the past year, insiders have sold $533,000 worth of iFAST Corporation Ltd. (SGX:AIY) at an average price of S$8.31 per share, giving them the most bang for their buck. The company’s market valuation shrank by S$120 million after the share price fell 8.7% over the past week, but insiders were spared painful losses.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

See our latest analysis for iFAST

The last 12 months of insider trading at iFAST

Insider Loh Ken Ng made the biggest insider sell in the last 12 months. This single transaction was for S$336,000 worth of shares at a price of S$8.18 each. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. It is reassuring that this sale was made at a price well above the current share price of 4.31 Singapore dollars. So this may not tell us anything about what insiders think of the current stock price. The only individual insider seller in the past year was Loh Ken Ng.

Over the past twelve months, insiders have bought 70,000 shares for S$392,000. But they sold 64.10k shares for S$533k. Loh Ken Ng sold a total of 64,10,000 shares during the year at an average price of S$8.31. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

SGX: AIY Insider Trading Volume June 14, 2022

If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).

iFAST insiders recently bought shares

Over the past three months, we have seen significant insider buying at iFAST. Specifically, independent director Chee Wai Kok bought $94,000 worth of stock around this time, and we didn’t record any sales. This is a positive point in our book because it implies a certain confidence.

Insider ownership

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. It’s great to see that iFAST insiders own 29% of the company, worth around S$371 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

So what do iFAST insider trades indicate?

The recent insider buying is encouraging. On the other hand, the history of transactions, over the last year, is not so positive. The recent insider buying, along with high insider ownership, suggests that iFAST insiders are quite aligned and bullish. 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. During our analysis, we found that iFAST has 2 warning signs and it would be unwise to ignore them.

But note: iFAST may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE 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.