Don't Ignore The Fact That This Insider Just Sold Some Shares In Doumob (HKG:1917)

By
Simply Wall St
Published
September 17, 2021
SEHK:1917
Source: Shutterstock

Investors may wish to note that the Executive Chairman & Co-CEO of Doumob, Bin Yang, recently netted HK$58k from selling stock, receiving an average price of HK$0.12. On the bright side, that's just a small sale and only reduced their holding by 0.05%.

View our latest analysis for Doumob

Doumob Insider Transactions Over The Last Year

Notably, that recent sale by Bin Yang is the biggest insider sale of Doumob shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.10). So it is hard to draw any strong conclusion from it.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:1917 Insider Trading Volume September 17th 2021

I will like Doumob better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Doumob Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Doumob insiders own 57% of the company, currently worth about HK$134m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Doumob Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. When we did our research, we found 3 warning signs for Doumob (1 shouldn't be ignored!) that we believe deserve your full attention.

Of course Doumob 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.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.