Even if it's not a huge purchase, we think it was good to see that Keng Seong Fong, the Deputy CEO & Executive Director of PropNex Limited (SGX:OYY) recently shelled out S$88k to buy stock, at S$0.88 per 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.

View our latest analysis for PropNex

The Last 12 Months Of Insider Transactions At PropNex

Notably, that recent purchase by Deputy CEO & Executive Director Keng Seong Fong was not the only time they bought PropNex shares this year. Earlier in the year, they paid S$1.03 per share in a S$989k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.86). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Keng Seong Fong was the only individual insider to buy during the last year.

Keng Seong Fong bought a total of 1.07m shares over the year at an average price of S$1.00. You can see the insider transactions (by companies and 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!

PropNex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does PropNex Boast High 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. PropNex insiders own about S$153m worth of shares (which is 24% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The PropNex Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PropNex. Looks promising! 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. Every company has risks, and we've spotted 1 warning sign for PropNex you should know about.