With the price of Digital Domain Holdings Limited (HKG:547) down 12% this week, insiders may find some comfort after selling HK$227 million worth of shares earlier this year.

Over the past year, insiders have sold HK$227 million worth of Digital Domain Holdings Limited (HKG: 547) shares at an average price of HK$0.67 per share, giving them the most for their money. The company’s market valuation shrank by HK$173 million after the share price fell 12% over the past week, but insiders were spared painful losses.

While insider trading isn’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep tabs on what insiders are doing.

Check opportunities and risks within the HK entertainment industry.

The last 12 months of insider trading at Digital Domain Holdings

In the past twelve months, the largest single insider purchase occurred when insider Cheang Ng bought HK$168 million worth of shares at a price of HK$0.70 per share. This means that even when the stock price was above HK$0.30 (the recent price), an insider wanted to buy stock. Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. For us, it is very important to consider the price that insiders pay for the shares. Generally, we are more positive about a stock when an insider has bought the stock at prices above the current price, as this suggests that they view the stock as good value, even at a higher price. raised. Cheang Ng was the only individual insider to buy in the past year.

Over the past year, we’ve seen more insider selling of Digital Domain Holdings stock than buying. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

SEHK:547 Insider Trading Volume October 14, 2022

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).

Does Digital Domain Holdings boast of high insider ownership?

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. It appears that Digital Domain Holdings insiders own 32% of the company, which is worth around HK$414 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.

So what do Digital Domain Holdings insider trading indicate?

There have been no insider trades in the last three months – that’s not saying much. While we’re pleased with the high insider ownership of Digital Domain Holdings, we can’t say the same about the stock sale. In addition to knowing the insider trading going on, it pays to identify the risks that Digital Domain Holdings faces. Example: we have identified 2 warning signs for Digital Domain Holdings you should be aware.

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

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.

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.

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