Anyone interested in Dowway Holdings Limited (HKG:8403) should probably be aware that the Chairman of the Board, Xiaodi Huang, recently divested HK$2.0m worth of shares in the company, at an average price of HK$1.00 each. On the bright side, that sale was only 5.0% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At Dowway Holdings

Notably, that recent sale by Chairman of the Board Xiaodi Huang was not the only time they sold Dowway Holdings shares this year. They previously made an even bigger sale of -HK$4.0m worth of shares at a price of HK$1.00 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. The silver lining is that this sell-down took place above the latest price (HK$0.75). So it may not tell us anything about how insiders feel about the current share price.

Xiaodi Huang ditched 6.00m shares over the year. The average price per share was CN¥1.00. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Dowway Holdings insiders own 51% of the company, currently worth about HK$48m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Dowway Holdings Insiders?

An insider hasn't bought Dowway Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dowway Holdings. When we did our research, we found 5 warning signs for Dowway Holdings (2 are potentially serious!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.