We note that the DYNAM JAPAN HOLDINGS Co., Ltd. (HKG:6889) Senior Corporate Advisor & Non-Executive Director, Yoji Sato, recently sold HK$393k worth of stock for HK$3.69 per share. However we note that the sale only shrunk their holding by 0.03%.

DYNAM JAPAN HOLDINGS Insider Transactions Over The Last Year

Notably, that recent sale by Senior Corporate Advisor & Non-Executive Director Yoji Sato was not the only time they traded DYNAM JAPAN HOLDINGS shares this year. Earlier in the year, they spent HK$38m to buy shares at HK$3.88 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$3.52). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 during the last year. Notably Yoji Sato was also the biggest seller.

Yoji Sato ditched 10.02m shares over the year. The average price per share was JP¥3.84. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of DYNAM JAPAN HOLDINGS

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that DYNAM JAPAN HOLDINGS insiders own 59% of the company, worth about HK$1.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for DYNAM JAPAN HOLDINGS (of which 2 don't sit too well with us!) you should know about.

But note: DYNAM JAPAN 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