Man Fai Wong Buys Handful Of Shares In Unity Group Holdings International

Potential Unity Group Holdings International Limited (HKG:1539) shareholders may wish to note that the Co-Founder, Man Fai Wong, recently bought HK$1.1m worth of stock, paying HK$0.40 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Unity Group Holdings International

The Last 12 Months Of Insider Transactions At Unity Group Holdings International

Notably, that recent purchase by Co-Founder Man Fai Wong was not the only time they traded Unity Group Holdings International shares this year. They previously made a sale of -HK$1.2m worth of shares at a price of HK$0.40 per share. That means that even when the share price was below the current price of HK$0.45, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.2% of Man Fai Wong's holding.

Man Fai Wong bought 7.40m shares over the last 12 months at an average price of HK$0.40. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Unity Group Holdings International 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Unity Group Holdings International insiders own 58% of the company, currently worth about HK$888m 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 Does This Data Suggest About Unity Group Holdings International Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Unity Group Holdings International. Nice! 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. Case in point: We've spotted 2 warning signs for Unity Group Holdings International you should be aware of, and 1 of these doesn't sit too well with us.

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.