Read This Before Selling Sasseur Real Estate Investment Trust (SGX:CRPU) Shares

Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Sasseur Real Estate Investment Trust (SGX:CRPU).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

See our latest analysis for Sasseur Real Estate Investment Trust

The Last 12 Months Of Insider Transactions At Sasseur Real Estate Investment Trust

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director of Sasseur Asset Management Pte. Ltd. Heng Cheng bought S$280k worth of shares at a price of S$0.80 per share. So it’s clear an insider wanted to buy, even at a higher price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. It’s not at all bad to see insiders buy shares at or above current prices.

Happily, we note that in the last year insiders bought 1.09m shares for a total of S$842k. Overall, Sasseur Real Estate Investment Trust insiders were net buyers last year. The average buy price was around S$0.77. These transactions suggest that insiders have considered the current price of S$0.77 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

SGX:CRPU Recent Insider Trading, February 21st 2019
SGX:CRPU Recent Insider Trading, February 21st 2019

Sasseur Real Estate Investment Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Sasseur Real Estate Investment Trust Have Bought Stock Recently

Over the last quarter, Sasseur Real Estate Investment Trust insiders have spent a meaningful amount on shares. We can see that Chief Executive Officer of Sasseur Asset Management Pte. Ltd. Meng Huat Ang paid S$69k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Our data isn’t picking up on much insider ownership at Sasseur Real Estate Investment Trust, though insiders do hold about S$805k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Sasseur Real Estate Investment Trust Insiders?

It is good to see recent insider purchase. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Sasseur Real Estate Investment Trust stock. Of course, the future is what matters most. So if you are interested in Sasseur Real Estate Investment Trust, you should check out this free report on analyst forecasts for the company.

But note: Sasseur Real Estate Investment Trust may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.