Bullish insiders at Suntec Real Estate Investment Trust (SGX:T82U) loaded up on S$6.2m of stock earlier this year

Over the last year, a good number of insiders have significantly increased their holdings in Suntec Real Estate Investment Trust (SGX:T82U). This is encouraging because it indicates that insiders are more optimistic about the company’s prospects.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Our analysis indicates that T82U is potentially undervalued!

Suntec Real Estate Investment Trust Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Wai-Wai Chow, sold S$3.0m worth of shares at a price of S$1.52 per share. So what is clear is that an insider saw fit to sell at around the current price of S$1.40. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Wai-Wai Chow was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid S$6.2m for 4.20m shares. On the other hand they divested 2.00m shares, for S$3.0m. In the last twelve months there was more buying than selling by Suntec Real Estate Investment Trust insiders. The average buy price was around S$1.47. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SGX:T82U Insider Trading Volume November 19th 2022

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Suntec Real Estate Investment Trust Insiders Bought Stock Recently

It’s good to see that Suntec Real Estate Investment Trust insiders have made notable investments in the company’s shares. Overall, three insiders shelled out S$4.6m for shares in the company — and none sold. That shows some optimism about the company’s future.

inside ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Suntec Real Estate Investment Trust insiders own 28% of the company, currently worth about S$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Suntec Real Estate Investment Trust. Looks promising! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, Suntec Real Estate Investment Trust has 4 warning signs (and 2 which can’t be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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Find out whether Suntec Real Estate Investment Trust is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.