This Insider Has Just Sold Shares In Unity Group Holdings International

Anyone interested in Unity Group Holdings International Limited (HKG:1539) should probably be aware that the Co-Founder, Man Fai Wong, recently divested HK$3.4m worth of shares in the company, at an average price of HK$0.35 each. On the bright side, that sale was only 0.5% of their holding, so we doubt it's very meaningful, on its own.

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Unity Group Holdings International Insider Transactions Over The Last Year

Notably, that recent sale by Man Fai Wong is the biggest insider sale of Unity Group Holdings International shares that we've seen in the last year. That means that an insider was selling shares at around the current price of HK$0.35. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid HK$2.8m for 8.24m shares. On the other hand they divested 15.21m shares, for HK$5.4m. Man Fai Wong divested 15.21m shares over the last 12 months at an average price of HK$0.36. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Unity Group Holdings International

I will like Unity Group Holdings International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Unity Group Holdings International

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Unity Group Holdings International insiders own about HK$683m worth of shares (which is 57% 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.

So What Do The Unity Group Holdings International Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Unity Group Holdings International stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Unity Group Holdings International is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Unity Group Holdings International. When we did our research, we found 2 warning signs for Unity Group Holdings International (1 is a bit concerning!) that we believe deserve your full attention.

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.