Don't Ignore The Fact That This Insider Just Sold Some Shares In Da Sen Holdings Group Limited (HKG:1580)

Investors may wish to note that an insider of Da Sen Holdings Group Limited, Songmao Wang, recently netted HK$156k from selling stock, receiving an average price of HK$0.20. However we note that the sale only shrunk their holding by 2.9%.

View our latest analysis for Da Sen Holdings Group

The Last 12 Months Of Insider Transactions At Da Sen Holdings Group

Over the last year, we can see that the biggest insider purchase was by insider Tseng Hon Wong for HK$19m worth of shares, at about HK$0.45 per share. That means that even when the share price was higher than HK$0.20 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 66.19m shares for HK$27m. But insiders sold 765.00k shares worth HK$156k. Overall, Da Sen Holdings Group 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Da Sen Holdings Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Da Sen Holdings Group insiders own 61% of the company, worth about HK$125m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Da Sen Holdings Group Insider Transactions Indicate?

An insider sold Da Sen Holdings Group shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. 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 instance, we've identified 4 warning signs for Da Sen Holdings Group (1 is a bit unpleasant) you should be aware of.

Of course Da Sen Holdings Group 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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