Don't Ignore The Insider Selling In DPC Dash

Anyone interested in DPC Dash Ltd (HKG:1405) should probably be aware that the Non-Executive Chairman, Frank Paul Krasovec, recently divested HK$3.3m worth of shares in the company, at an average price of HK$64.93 each. On the bright side, that sale was only 1.8% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for DPC Dash

DPC Dash Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Deputy Chairman James Leslie Marshall for HK$5.0m worth of shares, at about HK$54.89 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$62.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid HK$17m for 312.50k shares. But they sold 89.20k shares for HK$5.8m. Overall, DPC Dash insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership Of DPC Dash

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that DPC Dash insiders own 38% of the company, worth about HK$3.1b. 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 DPC Dash Insiders?

An insider sold DPC Dash shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - DPC Dash has 1 warning sign we think you should be aware of.

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.

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.