Possible Signal As 3DG Holdings (International) Insiders Sell HK$107m In Stock

Even though 3DG Holdings (International) Limited (HKG:2882) stock gained 10% last week, insiders who sold HK$107m worth of stock over the past year are probably better off. Selling at an average price of HK$0.75, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for 3DG Holdings (International)

The Last 12 Months Of Insider Transactions At 3DG Holdings (International)

The insider, Chaoguang Wang, made the biggest insider sale in the last 12 months. That single transaction was for HK$49m worth of shares at a price of HK$0.75 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of HK$0.64. So it may not shed much light on insider confidence at current levels.

In the last year 3DG Holdings (International) insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does 3DG Holdings (International) Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that 3DG Holdings (International) insiders own about HK$17m worth of shares (which is 9.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At 3DG Holdings (International) Tell Us?

It doesn't really mean much that no insider has traded 3DG Holdings (International) shares in the last quarter. We don't take much encouragement from the transactions by 3DG Holdings (International) insiders. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of 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. Every company has risks, and we've spotted 2 warning signs for 3DG Holdings (International) (of which 1 is a bit concerning!) you should know about.

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.

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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.