We wouldn’t blame Unity Enterprise Holdings Limited (HKG:2195) shareholders if they were a bit concerned that Wing Sun Yeung, the executive chairman of the board, recently made about HK$23 million by selling shares at an average price of 0.92 $HK. However, it is crucial to note that they remain very invested in the title and that the sale only reduced their stake by 3.8%.
See our latest analysis for Unity Enterprise Holdings
The last 12 months of insider trading at Unity Enterprise Holdings
Notably, this recent sale by Wing Sun Yeung is the largest insider sale of Unity Enterprise Holdings stock we have seen in the past year. Clearly, therefore, an insider wanted to take money off the table even slightly below the current price of HK$0.92. When an insider sells below the current price, it suggests that they consider this lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. This one-time sale only accounted for 3.8% of Wing Sun Yeung’s stake.
Wing Sun Yeung gave up 125.00 million shares during the year. The average price per share was HK$0.72. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. Unity Enterprise Holdings insiders own 63% of the company, currently worth around HK$575 million based on recent share price. I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.
So what do Unity Enterprise Holdings insider trading indicate?
An insider recently sold shares of Unity Enterprise Holdings, but did not buy any. And even if we look at last year, we haven’t seen any purchases. The company enjoys strong insider ownership, but we are a little hesitant given the history of stock sales. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example, we have identified 3 warning signs for Unity Enterprise Holdings (1 is a little worrying) you should be aware.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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