28-03-2025
KOP Insiders Added S$1.17m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of KOP Limited (Catalist:5I1) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
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Over the last year, we can see that the biggest insider purchase was by insider Seng Hui Goi for S$1.2m worth of shares, at about S$0.03 per share. Even though the purchase was made at a significantly lower price than the recent price (S$0.048), we still think insider buying is a positive. 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.
While KOP insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for KOP
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Over the last quarter, KOP insiders have spent a meaningful amount on shares. Specifically, insider Seng Hui Goi bought S$1.2m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that KOP insiders own 41% of the company, worth about S$22m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about KOP. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KOP. For instance, we've identified 2 warning signs for KOP (1 is concerning) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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