Anyone interested in National United Resources Holdings Limited (HKG:254) should probably be aware that the Executive Director, Xin Tian, recently divested HK$1.9m worth of shares in the company, at an average price of HK$0.03 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
Check out our latest analysis for National United Resources Holdings
National United Resources Holdings Insider Transactions Over The Last Year
Notably, that recent sale by Xin Tian is the biggest insider sale of National United Resources Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (HK$0.052). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Xin Tian's holding.
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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that National United Resources Holdings insiders own 54% of the company, worth about HK$122m. 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 National United Resources Holdings Tell Us?
An insider hasn't bought National United Resources Holdings stock in the last three months, but there was some selling. 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 3 warning signs for National United Resources Holdings you should be aware of, and 1 of them is significant.
Of course National United Resources Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.