This Insider Has Just Sold Shares In Shenzhen Dobot

Some Shenzhen Dobot Corp Ltd (HKG:2432) shareholders may be a little concerned to see that the GM & Executive Chairman of the Board, Peichao Liu, recently sold a substantial HK$54m worth of stock at a price of HK$27.69 per share. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.

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Shenzhen Dobot Insider Transactions Over The Last Year

In fact, the recent sale by Peichao Liu was the biggest sale of Shenzhen Dobot shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$37.88). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.5% of Peichao Liu's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Shenzhen Dobot

I will like Shenzhen Dobot 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.

Insider Ownership Of Shenzhen Dobot

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Shenzhen Dobot insiders own 19% of the company, worth about HK$3.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Shenzhen Dobot Insider Transactions Indicate?

An insider hasn't bought Shenzhen Dobot 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. 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. Case in point: We've spotted 3 warning signs for Shenzhen Dobot you should be aware of.

Of course Shenzhen Dobot may not be the best stock to buy. So you may wish to see this free collection of high quality 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.