Enviro-Hub Holdings Up 14%, But Some Insiders Miss Out

While it’s been a great week for Enviro-Hub Holdings Ltd. (SGX:L23) shareholders after stock gained 14%, not so much for insiders who sold stock over the past year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Enviro-Hub Holdings

The Last 12 Months Of Insider Transactions At Enviro-Hub Holdings

The insider, Siau Woei Law, made the biggest insider sale in the last 12 months. That single transaction was for S$99k worth of shares at a price of S$0.033 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (S$0.024). So it may not shed much light on insider confidence at current levels. Siau Woei Law was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 2.16m shares worth S$65k. On the other hand they divested 3.00m shares, for S$99k. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Enviro-Hub Holdings insiders own 68% of the company, currently worth about S$25m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Enviro-Hub Holdings Insiders?

It doesn't really mean much that no insider has traded Enviro-Hub Holdings shares in the last quarter. While we feel good about high insider ownership of Enviro-Hub Holdings, we can't say the same about the selling of shares. 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. Every company has risks, and we've spotted 4 warning signs for Enviro-Hub Holdings you should know about.

But note: Enviro-Hub Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.