Insider Sellers Might Regret Selling Unity Enterprise Holdings Shares at a Lower Price Than Current Market Value

Unity Enterprise Holdings Limited's (HKG:2195) value has fallen 10% in the last week, but insiders who sold HK$15m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of HK$0.19 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Unity Enterprise Holdings

Unity Enterprise Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Wing Sun Yeung, for HK$4.9m worth of shares, at about HK$0.21 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.14). So it is hard to draw any strong conclusion from it. Wing Sun Yeung was the only individual insider to sell over the last year.

Wing Sun Yeung sold a total of 78.00m shares over the year at an average price of HK$0.19. 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!

I will like Unity Enterprise Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Unity Enterprise Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Unity Enterprise Holdings. In total, insider Wing Sun Yeung dumped HK$2.8m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Unity Enterprise Holdings insiders own 53% of the company, currently worth about HK$74m 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 Enterprise Holdings Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 instance, we've identified 3 warning signs for Unity Enterprise Holdings (1 makes us a bit uncomfortable) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.