The recent price decline of 49% in Camsing Healthcare Limited's (SGX:BAC) stock may have disappointed insiders who bought S$3.25m worth of shares at an average price of S$0.05 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth S$2.67m which is not ideal.

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.

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Camsing Healthcare Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Director Xiaoyi Duanmu bought S$1.3m worth of shares at a price of S$0.05 per share. That means that an insider was happy to buy shares at above the current price of S$0.041. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Happily, we note that in the last year insiders paid S$3.3m for 65.01m shares. On the other hand they divested 21.01m shares, for S$1.1m. In total, Camsing Healthcare insiders bought more than they sold over the last year. 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!

Check out our latest analysis for Camsing Healthcare

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Camsing Healthcare Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Camsing Healthcare insiders own 83% of the company, currently worth about S$3.1m based on the recent share price. 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 Camsing Healthcare Insider Transactions Indicate?

The fact that there have been no Camsing Healthcare insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Camsing Healthcare insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Camsing Healthcare. Every company has risks, and we've spotted 5 warning signs for Camsing Healthcare (of which 4 are a bit unpleasant!) you should know about.

But note: Camsing Healthcare 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.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.