Insider Buying: United Overseas Bank Deputy Chairman & CEO Bought S$5.1m Of Shares

Those following along with United Overseas Bank Limited (SGX:U11) will no doubt be intrigued by the recent purchase of shares by Ee Cheong Wee, Deputy Chairman & CEO of the company, who spent a stonking S$5.1m on stock at an average price of S$33.76. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At United Overseas Bank

Notably, that recent purchase by Deputy Chairman & CEO Ee Cheong Wee was not the only time they bought United Overseas Bank shares this year. They previously made an even bigger purchase of S$7.7m worth of shares at a price of S$38.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$34.03). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months United Overseas Bank insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for United Overseas Bank

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Insider Ownership Of United Overseas Bank

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. United Overseas Bank insiders own 5.8% of the company, currently worth about S$3.2b 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.

So What Does This Data Suggest About United Overseas Bank Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about United Overseas Bank. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for United Overseas Bank you should know about.

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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.