Insiders Could Have Profited By Holding onto Unity Enterprise Holdings Shares Despite 11% Drop

Despite the fact that Unity Enterprise Holdings Limited's (HKG:2195) value has dropped 11% in the last week insiders who sold HK$7.8m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of HK$0.17 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Unity Enterprise Holdings

Unity Enterprise Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Wing Sun Yeung, sold HK$2.0m worth of shares at a price of HK$0.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.058. 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 45.00m shares over the year at an average price of HK$0.17. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Unity Enterprise Holdings Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Unity Enterprise Holdings insiders own about HK$38m worth of shares (which is 55% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Unity Enterprise Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Unity Enterprise Holdings, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Unity Enterprise Holdings. Our analysis shows 4 warning signs for Unity Enterprise Holdings (3 are concerning!) and we strongly recommend you look at them before investing.

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.