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Insiders were net buyers of United Overseas Bank Limited's (SGX:U11 ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for United Overseas Bank
The Last 12 Months Of Insider Transactions At United Overseas Bank
In the last twelve months, the biggest single purchase by an insider was when Deputy Chairman & CEO Ee Cheong Wee bought S$2.8m worth of shares at a price of S$28.50 per share. Even though the purchase was made at a significantly lower price than the recent price (S$37.35), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
United Overseas Bank is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of United Overseas Bank
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that United Overseas Bank insiders own 5.7% of the company, worth about S$3.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About United Overseas Bank Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like United Overseas Bank insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing United Overseas Bank. In terms of investment risks, we've identified 1 warning sign with United Overseas Bank and understanding this should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.