Potential  AEM Holdings Ltd  (SGX:AWX) shareholders may wish to note that the Non-Executive Non-Independent Director, Ban Leng Toh, recently bought S$335k worth of stock, paying S$3.35 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for AEM Holdings

The Last 12 Months Of Insider Transactions At AEM Holdings

Notably, that recent purchase by Non-Executive Non-Independent Director Ban Leng Toh was not the only time they traded AEM Holdings shares this year. They previously made a  sale  of -S$3.3m worth of shares at a price of S$4.12 per share. We generally don' t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of S$3.51. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of AEM Holdings shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SGX:AWX Insider Trading Volume May 18th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this  free  list of companies. (Hint: insiders have been buying them).

Insider Ownership of AEM Holdings

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. It appears that AEM Holdings insiders own 7.8% of the company, worth about S$75m. We' ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The AEM Holdings Insider Transactions Indicate?

It' s certainly positive to see the recent insider purchase. But we can' t say the same for the transactions over the last 12 months. While recent transactions indicate confidence in AEM Holdings, insiders don' t own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. While we like knowing what' s going on with the insider' s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks,  we' ve identified 3 warning signs  with AEM Holdings  and understanding these should be part of your investment process.

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, but not derivative transactions.