Insiders Sold Dafeng Port Heshun Technology Prematurely At HK$0.19 With Stock Trading Higher

Dafeng Port Heshun Technology Company Limited's (HKG:8310) stock price has dropped 11% in the previous week, but insiders who sold HK$2.5m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of HK$0.19 is still lower than 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 do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Dafeng Port Heshun Technology

Dafeng Port Heshun Technology Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Wen Jiang, for HK$2.5m worth of shares, at about HK$0.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.16. So it may not shed much light on insider confidence at current levels. Wen Jiang was the only individual insider to sell over 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Dafeng Port Heshun Technology Have Sold Stock Recently

The last quarter saw substantial insider selling of Dafeng Port Heshun Technology shares. In total, insider Wen Jiang sold HK$2.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Dafeng Port Heshun Technology

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. From looking at our data, insiders own HK$8.4m worth of Dafeng Port Heshun Technology stock, about 4.1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Dafeng Port Heshun Technology Tell Us?

An insider hasn't bought Dafeng Port Heshun Technology stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 6 warning signs for Dafeng Port Heshun Technology (4 don't sit too well with us) you should be aware of.

Of course Dafeng Port Heshun Technology 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, but not derivative transactions.

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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.