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Those following along with United Overseas Bank Limited (SGX:U11) will no doubt be intrigued by the recent purchase of shares by Ee Cheong Wee, Deputy Chairman & CEO of the company, who spent a stonking S$7.7m on stock at an average price of S$38.65. While that only increased their holding size by 0.4%, it is still a big swing by our standards.
Check out our latest analysis for United Overseas Bank
United Overseas Bank Insider Transactions Over The Last Year
Notably, that recent purchase by Ee Cheong Wee is the biggest insider purchase of United Overseas Bank shares that we've seen in the last year. That means that even when the share price was higher than S$38.38 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ee Cheong Wee was the only individual insider to buy during the last year.
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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does United Overseas Bank Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. United Overseas Bank insiders own 5.7% of the company, currently worth about S$3.7b based on the recent share price. 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 Does This Data Suggest About United Overseas Bank Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about United Overseas Bank. Nice! 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 1 warning sign for United Overseas Bank that deserve your attention before buying any shares.