This Insider Has Just Sold Shares In Dowway Holdings

We wouldn't blame Dowway Holdings Limited (HKG:8403) shareholders if they were a little worried about the fact that Xiaodi Huang, the Chairman of the Board recently netted about HK$4.0m selling shares at an average price of HK$1.00. However, that sale only accounted for 9.2% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Dowway Holdings

Dowway Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Xiaodi Huang is the biggest insider sale of Dowway Holdings shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.87. So it is hard to draw any strong conclusion from it.

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!

I will like Dowway Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Dowway 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dowway Holdings insiders own about HK$59m worth of shares (which is 56% of the company). 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 Dowway Holdings Insider Transactions Indicate?

An insider sold Dowway Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for Dowway Holdings (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

Of course Dowway 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 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.