Second Chance Properties Ltd (SGX:528) founder Mohamed Salleh Marican just bought a few more shares

Potential Second Chance Properties Ltd. (SGX:528) Shareholders may wish to note that founder Mohamed Salleh Marican recently purchased S$360,000 worth of shares, paying S$0.22 for each share. Although the purchase is not large, either in percentage or in absolute value, it can be considered a good sign.

Check out our latest analysis for second chance properties

The last 12 months of insider trading in second chance properties

Notably, this recent purchase by Mohamed Salleh Marican is the largest insider purchase of Second Chance Properties stock we have seen in the past year. This implies that an insider found the current price of S$0.22 per share attractive. This means that they have been optimistic about the company in the past, although they may have changed their minds. We always like to see insider buys, but it’s worth noting if those buys were made well below the current stock price, as the discount to value may have diminished as the price rose. In this case, we are happy to report that the insider bought shares at prices close to current prices. Mohamed Salleh Marican was the only individual insider to buy shares in the last twelve months.

Mohamed Salleh Marican bought 5.21 million shares in the last 12 months at an average price of S$0.26. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

SGX:528 Insider Trading Volume May 19, 2022

Second Chance Properties isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.

Second Chance Properties Insider Ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. Insiders of Second Chance Properties own approximately S$170 million worth of shares (equivalent to 83% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

What could insider trading in second-chance properties tell us?

We cannot draw any useful conclusions about recent transactions, as insider buying and selling have been balanced. But insiders have shown more appetite for the stock over the past year. It would be great to see more insiders buying, but overall it seems Second Chance Properties insiders are reasonably well-aligned (holding a significant share of the company’s stock) and optimistic about the future. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example, Second Chance Properties has 5 warning signs (and 2 that are potentially serious) that we think you should know about.

But note: Second chance properties may not be the best stocks 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.