Insiders Could Have Profited By Holding onto Uni-Bio Science Group Shares Despite 11% Drop
Even though Uni-Bio Science Group Limited (HKG:690) has fallen by 11% over the past week , insiders who sold HK$187m worth of 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 HK$0.12 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 do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Uni-Bio Science Group
Over the last year, we can see that the biggest insider purchase was by insider Yi Wah Lau for HK$185m worth of shares, at about HK$0.12 per share. That means that an insider was happy to buy shares at above the current price of HK$0.079. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. 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. Yi Wah Lau was the only individual insider to buy shares in the last twelve months.
Kingsley Leung sold a total of 1.58b shares over the year at an average price of HK$0.12. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Uni-Bio Science Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Uni-Bio Science Group insiders own 47% of the company, currently worth about HK$223m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Uni-Bio Science Group Insiders?
The fact that there have been no Uni-Bio Science Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Uni-Bio Science Group, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Uni-Bio Science Group (including 1 which shouldn't be ignored).
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.