Don't Ignore The Insider Selling In UOB-Kay Hian Holdings
We wouldn't blame UOB-Kay Hian Holdings Limited (SGX:U10) shareholders if they were a little worried about the fact that Ee-Chao Wee, the Executive Chairman of the Board & MD recently netted about S$1.4m selling shares at an average price of S$4.60. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.2%.
UOB-Kay Hian Holdings Insider Transactions Over The Last Year
The Non-Independent Non-Executive Director, Wee Loke Tang, made the biggest insider sale in the last 12 months. That single transaction was for S$4.4m worth of shares at a price of S$4.24 each. So it's clear an insider wanted to take some cash off the table, even below the current price of S$4.34. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.8% of Wee Loke Tang's stake.
Insiders in UOB-Kay Hian Holdings didn't buy any shares in the last year. 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!
See our latest analysis for UOB-Kay Hian Holdings
I will like UOB-Kay Hian 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 UOB-Kay Hian Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. UOB-Kay Hian Holdings insiders own about S$1.0b worth of shares (which is 24% of the company). 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 UOB-Kay Hian Holdings Insiders?
An insider sold UOB-Kay Hian Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that UOB-Kay Hian Holdings is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of UOB-Kay Hian Holdings.
But note: UOB-Kay Hian Holdings 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.
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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.