We'd be surprised if DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) shareholders haven't noticed that the Senior Corporate Advisor & Non-Executive Director, Yoji Sato, recently sold HK$1.1m worth of stock at HK$3.51 per share. However, the silver lining is that the sale only reduced their total holding by 0.09%, so we're hesitant to read anything much into it, on its own.
View our latest analysis for DYNAM JAPAN HOLDINGS
The Last 12 Months Of Insider Transactions At DYNAM JAPAN HOLDINGS
In fact, the recent sale by Senior Corporate Advisor & Non-Executive Director Yoji Sato was not their only trade of DYNAM JAPAN HOLDINGS shares this year. They previously purchased HK$38m worth of shares at a price of HK$3.88 per share. That means that an insider was happy to buy shares at above the current price of HK$3.48. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yoji Sato was the only individual insider to buy shares in the last twelve months. Notably Yoji Sato was also the biggest seller.
Yoji Sato ditched 10.73m shares over the year. The average price per share was JP¥3.82. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership Of DYNAM JAPAN HOLDINGS
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. I reckon it's a good sign if insiders own a significant number of shares in the company. DYNAM JAPAN HOLDINGS insiders own 59% of the company, currently worth about HK$1.4b 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 Does This Data Suggest About DYNAM JAPAN HOLDINGS Insiders?
An insider sold DYNAM JAPAN HOLDINGS shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that DYNAM JAPAN HOLDINGS is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Our analysis shows 4 warning signs for DYNAM JAPAN HOLDINGS (2 can't be ignored!) and we strongly recommend you look at these before investing.
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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.
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