Insiders Could Have Profited By Holding onto Global Uin Intelligence Holdings Shares Despite 22% Drop
Global Uin Intelligence Holdings Limited's (HKG:8496) stock price has dropped 22% in the previous week, but insiders who sold S$15m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of S$0.31 is still lower than the current share price.
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.
Global Uin Intelligence Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO, Compliance Officer & Executive Chairman, Yang Zhang, for HK$15m worth of shares, at about HK$0.31 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.049). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Yang Zhang.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Global Uin Intelligence Holdings
I will like Global Uin Intelligence Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Global Uin Intelligence Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Global Uin Intelligence Holdings insiders own 50% of the company, currently worth about HK$6.5m 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 Global Uin Intelligence Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Global Uin Intelligence Holdings insider transactions don't fill us with confidence. While it's good to be aware of 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 Global Uin Intelligence Holdings and understanding these should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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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.