Global Uin Intelligence Holdings Limited's (HKG:8496) value has fallen 12% in the last week, but insiders who sold S$14m worth of stock over the last year have had less success. Given that the average selling price of S$0.29 is still lower than the current share price, insiders would probably have been better off keeping their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Global Uin Intelligence Holdings
In the last twelve months, the biggest single sale by an insider was when the CEO, Compliance Officer & Executive Chairman, Yang Zhang, sold HK$14m worth of shares at a price of HK$0.29 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.26). So it may not shed much light on insider confidence at current levels. Yang Zhang was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Global Uin Intelligence Holdings insiders own 50% of the company, currently worth about HK$34m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
It doesn't really mean much that no insider has traded Global Uin Intelligence Holdings shares in the last quarter. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Global Uin Intelligence Holdings. For instance, we've identified 5 warning signs for Global Uin Intelligence Holdings (4 can't be ignored) you should be aware of.
But note: Global Uin Intelligence 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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