Have Dowway Holdings Insiders Been Selling Stock?

We'd be surprised if Dowway Holdings Limited (HKG:8403) shareholders haven't noticed that the Chairman of the Board, Xiaodi Huang, recently sold HK$2.0m worth of stock at HK$1.00 per share. However, the silver lining is that the sale only reduced their total holding by 5.0%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Dowway Holdings

The Last 12 Months Of Insider Transactions At Dowway Holdings

Notably, that recent sale by Chairman of the Board Xiaodi Huang was not the only time they sold Dowway Holdings shares this year. They previously made an even bigger sale of -HK$4.0m worth of shares at a price of HK$1.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.75. So it may not shed much light on insider confidence at current levels.

Xiaodi Huang sold a total of 6.00m shares over the year at an average price of CN¥1.00. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Dowway Holdings 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. We usually like to see fairly high levels of insider ownership. It's great to see that Dowway Holdings insiders own 51% of the company, worth about HK$48m. 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 Does This Data Suggest About Dowway Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Dowway Holdings (2 are significant!) and we strongly recommend you look at these before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.