Yahoo Finance Insiders may be rethinking their US$32m Jardine Matheson Holdings Limited (SGX:J36) investment now that the company has lost US$871m in value
The recent price decline of 5.6% in Jardine Matheson Holdings Limited's (SGX:J36) stock may have disappointed insiders who bought US$32m worth of shares at an average price of US$57.04 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$28m, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Jardine Matheson Holdings
The Last 12 Months Of Insider Transactions At Jardine Matheson Holdings
Over the last year, we can see that the biggest insider purchase was by Non Executive Director Anthony John Nightingale for US$26m worth of shares, at about US$58.50 per share. That means that an insider was happy to buy shares at above the current price of US$50.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Anthony John Nightingale was also the biggest seller.
Happily, we note that in the last year insiders paid US$32m for 555.56k shares. But they sold 477.00k shares for US$28m. In total, Jardine Matheson Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Jardine Matheson Holdings 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.
Jardine Matheson Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Jardine Matheson Holdings. We can see that Non-Executive Director Li-Ching Hsu paid US$986k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Does Jardine Matheson Holdings Boast High Insider Ownership?
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 Jardine Matheson Holdings insiders own 5.5% of the company, worth about US$802m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Jardine Matheson Holdings Tell Us?
The recent insider purchase is heartening. 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 Jardine Matheson Holdings. That's what I like to see! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Jardine Matheson Holdings.
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.
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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.
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