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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for DYNAM JAPAN HOLDINGS
DYNAM JAPAN HOLDINGS Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Senior Corporate Advisor & Non-Executive Director Yoji Sato bought HK$126m worth of shares at a price of HK$9.61 per share. That implies that an insider found the current price of HK$10.06 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for DYNAM JAPAN HOLDINGS share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Yoji Sato. Notably Yoji Sato was also the biggest seller, having sold HK$230m worth of shares.
Yoji Sato ditched 22.9m shares over the year. The average price per share was JP¥10.03. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of DYNAM JAPAN HOLDINGS
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. DYNAM JAPAN HOLDINGS insiders own 55% of the company, currently worth about HK$4.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.