DYNAM JAPAN HOLDINGS Co., Ltd.'s (HKG:6889) value has fallen 12% in the last week, but insiders who sold JP¥4.6m worth of stock over the last year have had less success. The average selling price of JP¥3.59 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At DYNAM JAPAN HOLDINGS
Over the last year, we can see that the biggest insider sale was by the Senior Corporate Advisor & Non-Executive Director, Yoji Sato, for HK$1.1m worth of shares, at about HK$3.51 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$3.06. So it is hard to draw any strong conclusion from it. Yoji Sato was the only individual insider to sell over the last year.
Yoji Sato sold a total of 1.27m shares over the year at an average price of JP¥3.59. 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!
See our latest analysis for DYNAM JAPAN HOLDINGS
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Does DYNAM JAPAN 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. We usually like to see fairly high levels of insider ownership. DYNAM JAPAN HOLDINGS insiders own about HK$1.2b worth of shares (which is 57% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At DYNAM JAPAN HOLDINGS Tell Us?
The fact that there have been no DYNAM JAPAN HOLDINGS insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of DYNAM JAPAN HOLDINGS insider transactions don't fill us with confidence. 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. To that end, you should learn about the 3 warning signs we've spotted with DYNAM JAPAN HOLDINGS (including 2 which are concerning) .
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.