Stock Analysis

Have Dynamic Holdings Limited (HKG:29) Insiders Been Selling Their Stock?

SEHK:29
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Anyone interested in Dynamic Holdings Limited (HKG:29) should probably be aware that the Independent Non-Executive Director, Lim Go, recently divested HK$1.6m worth of shares in the company, at an average price of HK$14.01 each. The eyebrow raising move amounted to a reduction of 13% in their holding.

View our latest analysis for Dynamic Holdings

The Last 12 Months Of Insider Transactions At Dynamic Holdings

Notably, that recent sale by Lim Go is the biggest insider sale of Dynamic Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$13.88. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

Lim Go sold a total of 266.00k shares over the year at an average price of HK$14.63. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:29 Insider Trading Volume March 18th 2021

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 Dynamic Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Dynamic Holdings insiders own 43% of the company, worth about HK$1.4b. 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 Dynamic Holdings Insider Transactions Indicate?

An insider hasn't bought Dynamic Holdings stock in the last three months, but there was some selling. 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. 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. Be aware that Dynamic Holdings is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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