Have Insiders Sold UOB-Kay Hian Holdings Shares Recently?

We wouldn't blame UOB-Kay Hian Holdings Limited (SGX:U10) shareholders if they were a little worried about the fact that Wee Loke Tang, the Non-Independent Non-Executive Director recently netted about S$1.2m selling shares at an average price of S$1.95. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.4%.

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UOB-Kay Hian Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board & MD, Ee-Chao Wee, for S$17m worth of shares, at about S$1.23 per share. That means that even when the share price was below the current price of S$1.93, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 7.0% of Ee-Chao Wee's holding.

In the last year UOB-Kay Hian Holdings insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 UOB-Kay Hian Holdings

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Does UOB-Kay Hian Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. UOB-Kay Hian Holdings insiders own 27% of the company, currently worth about S$483m 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.

What Might The Insider Transactions At UOB-Kay Hian Holdings Tell Us?

An insider sold UOB-Kay Hian Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that UOB-Kay Hian Holdings is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for UOB-Kay Hian Holdings (1 is a bit unpleasant!) that we believe deserve your full attention.

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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.