Who Has Been Selling DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for DYNAM JAPAN HOLDINGS

The Last 12 Months Of Insider Transactions At DYNAM JAPAN HOLDINGS

In the last twelve months, the biggest single sale by an insider was when the Senior Corporate Advisor & Non-Executive Director, Yoji Sato, sold HK$21m worth of shares at a price of HK$8.12 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$7.74. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Yoji Sato was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does DYNAM JAPAN HOLDINGS Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. DYNAM JAPAN HOLDINGS insiders own 54% of the company, currently worth about HK$3.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At DYNAM JAPAN HOLDINGS Tell Us?

It doesn't really mean much that no insider has traded DYNAM JAPAN HOLDINGS shares in the last quarter. While we feel good about high insider ownership of DYNAM JAPAN HOLDINGS, we can't say the same about the selling of shares. 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. At Simply Wall St, we found 3 warning signs for DYNAM JAPAN HOLDINGS that deserve your attention before buying any shares.

Of course DYNAM JAPAN HOLDINGS 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. 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.
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