Insiders were net sellers of DBS Group Holdings Ltd (SGX:D05 ) stock over the past year. In other words, insiders sold more shares than they bought.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.
Check out our latest analysis for DBS Group Holdings
DBS Group Holdings insider trading over the past year
Over the past year, we can see that the largest insider sale was by CEO and Executive Director, Piyush Gupta, for S$2.7 million worth of shares, at around S$29.80. per share. Clearly, therefore, an insider wanted to take money off the table, even below the current price of S$36.80. When an insider sells below the current price, it suggests that they consider this lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. It should be noted that this sale represented only 44% of Piyush Gupta’s stake. Piyush Gupta was the only individual insider to sell shares in the last twelve months.
Over the past year, we can see that insiders have bought 3.07k shares worth S$91k. But they sold 249,900 shares for S$7.7 million. Piyush Gupta has sold 249,900 shares over the past 12 months at an average price of S$30.87. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
DBS Group Holdings insiders sell the shares
The last three months have seen significant insider selling at DBS Group Holdings. In total, CEO and Executive Director Piyush Gupta sold S$1.6 million worth of shares during this time, and we recorded no purchases. In light of this, it’s hard to say that all insiders think stocks are a good deal.
Does DBS Group Holdings boast of high insider ownership?
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Insiders of DBS Group Holdings own approximately S$190 million worth of shares (or 0.2% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.
So what does this data suggest about DBS Group Holdings insiders?
An insider recently sold shares, but did not buy. And our longer-term analysis of insider trading didn’t provide confidence either. On the positive side, DBS Group Holdings is making money and increasing profits. The company enjoys strong insider participation, but we’re a little hesitant given the history of stock sales. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example, DBS Group Holdings has 3 warning signs (and 1 that makes us a little uneasy) we think you should know.
But note: DBS Group Holdings may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.