Insiders Could Have Profited By Holding onto Global Uin Intelligence Holdings Shares Despite 10% Drop

Global Uin Intelligence Holdings Limited's (HKG:8496) value has fallen 10% in the last week, but insiders who sold S$14m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of S$0.29 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Global Uin Intelligence Holdings

The Last 12 Months Of Insider Transactions At Global Uin Intelligence Holdings

In the last twelve months, the biggest single sale by an insider was when the CEO, Compliance Officer & Executive Chairman, Yang Zhang, sold HK$14m worth of shares at a price of HK$0.29 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.19. So it may not tell us anything about how insiders feel about the current share price. Yang Zhang was the only individual insider to sell shares in the last twelve months.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Global Uin Intelligence 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Global Uin Intelligence Holdings insiders own about HK$25m worth of shares (which is 50% 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.

What Might The Insider Transactions At Global Uin Intelligence Holdings Tell Us?

The fact that there have been no Global Uin Intelligence Holdings insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Global Uin Intelligence Holdings, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for Global Uin Intelligence Holdings that deserve your attention before buying any shares.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.