Insiders may want to re-evaluate their purchase of CN 1.3million shares as Shanghai Turbo Enterprises Ltd (SGX: AWM) drops to S $ 10million


The recent 49% drop in Shanghai Turbo Enterprises Ltd The shares (SGX: AWM) could be a blow to insiders who bought CN 1.3 million worth of shares at an average purchase price of CN ¥ 0.42 over the past 12 months. Insiders buy with the expectation that their investments will increase in value over a period of time. However, recent losses made their investment above CN worth 1.0 million, which is not ideal.

While insider trading isn’t the most important thing when it comes to investing for the long term, logic dictates that you pay attention to whether insiders are buying or selling stocks.

Check out our latest review for Shanghai Turbo Enterprises

Shanghai Turbo Enterprises insider trading in the past year

Over the past year, we can see that the biggest insider buy was made by insider Zhong Gao for S $ 1.3 million, at around S $ 0.42 per share. This means that an insider was happy to buy shares above the current price of S $ 0.33. Their perspective may have changed since, but it at least shows that they were feeling optimistic at the time. For us, it’s very important to consider the price insiders pay for stocks. It is encouraging to see an insider paid above the current price of the shares, as it suggests that he has seen value, even at higher levels. Zhong Gao was the only individual insider to buy shares in the past twelve months.

Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you click on the chart you can see all of the individual trades including the stock price, individual and date!

SGX: AWM Insider Trading Volume September 29, 2021

There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: the insiders bought them).

Shanghai Turbo Enterprises insider ownership

I like to watch how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Shanghai Turbo Enterprises insiders own 63% of the company, which is currently worth around S $ 6.4 million based on the recent share price. 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.

What might insider trading at Shanghai Turbo Enterprises tell us?

We certainly don’t mind the fact that there hasn’t been any Shanghai Turbo Enterprises insider trading recently. On a more positive note, transactions over the past year are encouraging. With strong insider ownership and encouraging transactions, it looks like insiders at Shanghai Turbo Enterprises believe the company has merit. In addition to knowing the current insider transactions, it is useful to identify the risks facing Shanghai Turbo Enterprises. To this end, you should inquire about the 5 warning signs we spotted with Shanghai Turbo Enterprises (including 4 potentially serious).

But beware : Shanghai Turbo Enterprises 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 the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St does not have any position in the mentioned stocks.

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