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$2.4m worth of stock, paying HK$0.48 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 Man Fai Wong is the biggest insider purchase of Unity Group Holdings International shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.47). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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. Man Fai Wong was the only individual insider to buy during the last year.

Man Fai Wong bought a total of 20.22m shares over the year at an average price of HK$0.42. 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!

Unity Group Holdings International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Unity Group Holdings International

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Unity Group Holdings International insiders own 66% of the company, currently worth about HK$994m 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.

What Might The Insider Transactions At Unity Group Holdings International Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Unity Group Holdings International. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Unity Group Holdings International (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: Unity Group Holdings International 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.