Insiders Enjoy S$11m Return After Buying Salt Investments Stock

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Insiders Enjoy S$11m Return After Buying Salt Investments Stock

Salt Investments Limited (SGX:FQ7) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 25% decline in the stock price. Even after accounting for the recent loss, the S$11.2m worth of stock purchased by them is now worth S$22.6m or in other words, their investment continues to give good returns.

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.

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Over the last year, we can see that the biggest insider purchase was by Head of Marine & Offshore Division Tian Lian for S$2.5m worth of shares, at about S$0.0015 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of S$0.003. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

Salt Investments insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SGX:FQ7 Insider Trading Volume February 16th 2025

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Salt Investments insiders own about S$33m worth of shares (which is 52% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Salt Investments insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we’ve found that Salt Investments has

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(4 are potentially serious!) that deserve your attention before going any further with your analysis.

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If you would prefer to check out another company — one with potentially superior financials — then do not miss this free

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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