From what we can see, insiders were net sellers in DBS Group Holdings Ltd's (SGX:D05 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At DBS Group Holdings

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Piyush Gupta, sold S$4.4m worth of shares at a price of S$35.62 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of S$35.79. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.2% of Piyush Gupta's holding. The only individual insider seller over the last year was Piyush Gupta.

Piyush Gupta ditched 310.00k shares over the year. The average price per share was S$34.03. You can see a visual depiction of insider transactions (by companies and 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!

I will like DBS Group Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

DBS Group Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at DBS Group Holdings. Specifically, CEO & Executive Director Piyush Gupta ditched S$7.1m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of DBS Group Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. DBS Group Holdings insiders own 0.3% of the company, currently worth about S$296m 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.

What Might The Insider Transactions At DBS Group Holdings Tell Us?

An insider sold DBS Group Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since DBS Group Holdings is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - DBS Group Holdings has 2 warning signs we think you should be aware of.

But note: DBS Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com