Anyone interested in Unity Enterprise Holdings Limited (HKG:2195) should probably be aware that the Executive Chairman of Board, Wing Sun Yeung, recently divested HK$2.1m worth of shares in the company, at an average price of HK$1.03 each. On the bright side, that sale was only 0.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Unity Enterprise Holdings

The Last 12 Months Of Insider Transactions At Unity Enterprise Holdings

Notably, that recent sale by Executive Chairman of Board Wing Sun Yeung was not the only time they sold Unity Enterprise Holdings shares this year. Earlier in the year, they fetched HK$0.92 per share in a -HK$23m sale. That means that even when the share price was below the current price of HK$1.05, 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. We note that the biggest single sale was only 3.8%of Wing Sun Yeung's holding.

Wing Sun Yeung divested 147.00m shares over the last 12 months at an average price of HK$0.75. 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!

For those who like to find winning investments this free list of growing 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. 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 Enterprise Holdings insiders own about HK$635m worth of shares (which is 61% of the company). 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 Unity Enterprise Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 3 warning signs for Unity Enterprise Holdings you should be aware of, and 2 of them are significant.

But note: Unity Enterprise 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, but not derivative transactions.

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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.