Nasdaq
华尔街日报DT Capital Drops To HK$0.053, Yet Insiders May Have Sold Too Early
DT Capital Limited's (HKG:356) stock price has dropped 13% in the previous week, but insiders who sold HK$2.8m in stock over the past year have had less luck. Given that the average selling price of HK$0.061 is still lower than the current share price, insiders would probably have been better off keeping their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At DT Capital
In the last twelve months, the biggest single sale by an insider was when the insider, Junda Liu, sold HK$1.9m worth of shares at a price of HK$0.06 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.053. So it may not tell us anything about how insiders feel about the current share price. Junda Liu was the only individual insider to sell shares in the last twelve months.
Junda Liu divested 46.08m shares over the last 12 months at an average price of HK$0.061. 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!
Check out our latest analysis for DT Capital
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At DT Capital Have Sold Stock Recently
The last quarter saw substantial insider selling of DT Capital shares. In total, insider Junda Liu sold HK$869k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of DT Capital
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that DT Capital insiders own 22% of the company, worth about HK$32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About DT Capital Insiders?
An insider hasn't bought DT Capital 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DT Capital. To that end, you should learn about the 4 warning signs we've spotted with DT Capital (including 1 which is concerning).
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.