This Insider Has Just Sold Shares In UOB-Kay Hian Holdings

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$2.7m selling shares at an average price of S$2.60. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At UOB-Kay Hian Holdings

The Executive Chairman of the Board & MD, Ee-Chao Wee, made the biggest insider sale in the last 12 months. That single transaction was for S$22m worth of shares at a price of S$1.55 each. So it's clear an insider wanted to take some cash off the table, even below the current price of S$2.54. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.1% of Ee-Chao Wee's holding.

UOB-Kay Hian Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for UOB-Kay Hian Holdings

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Insider Ownership Of UOB-Kay Hian Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. UOB-Kay Hian Holdings insiders own 26% of the company, currently worth about S$636m 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?

Insiders sold UOB-Kay Hian Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for UOB-Kay Hian Holdings you should be aware of.

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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.