In the last year, multiple insiders have substantially increased their holdings of DPC Dash Ltd (HKG:1405) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At DPC Dash
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Yi Wang, for HK$10m worth of shares, at about HK$80.39 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$39.86). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Yi Wang.
Happily, we note that in the last year insiders paid HK$65m for 1.71m shares. On the other hand they divested 149.60k shares, for HK$12m. In the last twelve months there was more buying than selling by DPC Dash insiders. Their average price was about HK$38.20. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
See our latest analysis for DPC Dash
DPC Dash is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At DPC Dash Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at DPC Dash. Overall, two insiders shelled out HK$50m for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of DPC Dash
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that DPC Dash insiders own 39% of the company, worth about HK$2.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At DPC Dash Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about DPC Dash. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for DPC Dash.
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.