Some XD Inc. (HKG:2400) shareholders may be a little concerned to see that the Founder, Yunjie Dai, recently sold a substantial HK$19m worth of stock at a price of HK$74.39 per share. However, that sale only accounted for 0.5% of their holding, so arguably it doesn't say much about their conviction.
In the last twelve months, the biggest single sale by an insider was when the Founder, Yimeng Huang, sold HK$128m worth of shares at a price of HK$85.65 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$67.30). So it may not tell us anything about how insiders feel about the current share price.
Insiders in XD didn't buy any shares in the last year. 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!
See our latest analysis for XD
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).
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 XD insiders own 44% of the company, worth about HK$14b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
Insiders haven't bought XD stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since XD 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing XD. Case in point: We've spotted 1 warning sign for XD you should be aware of.
Of course XD 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.