Are UMS Holdings insiders sales a concern?
UMS CEO and it major customer Applied Materials has been unloading their shares substantially.UMS shares has enjoyed a good run since its announcement of bonus shares, so naturally profit-taking to lower risk is expected especially when the company is so dependent on 1 customer and a highly cyclical industry.
Normally,i will take it as a red flag if insiders sell but in this case, semiconductor industry is still doing well and expected to do well for the rest of the year. Unless the insiders know something that isn’t reflected in the news, insider sales, in this case, is purely de-risking and not running ahead of bad news.
Entry filed under: Watch your step.