Enviro-Hub Holdings Insiders Benefit From Selling Stock At S$0.018
Although Enviro-Hub Holdings Ltd. (SGX:L23) shareholders have enjoyed a great week with the stock up 11%, insiders who sold stock over the past year haven't fared as well. The return on their investment would have been much higher had they held on to their stock.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Enviro-Hub Holdings
Notably, that recent sale by Siau Woei Law is the biggest insider sale of Enviro-Hub Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of S$0.02. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 8.8% of Siau Woei Law's stake.
Siau Woei Law ditched 25.18m shares over the year. The average price per share was S$0.018. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Enviro-Hub Holdings
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At Enviro-Hub Holdings Have Sold Stock Recently
The last three months saw significant insider selling at Enviro-Hub Holdings. Specifically, insider Siau Woei Law ditched S$456k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Enviro-Hub Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Enviro-Hub Holdings insiders own about S$20m worth of shares (which is 66% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Enviro-Hub Holdings Tell Us?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Enviro-Hub Holdings has 3 warning signs (and 2 which are potentially serious) we think you should know about.
But note: Enviro-Hub 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.