Chaince Digital Holdings Falls To US$6.14, But Insiders Sold At Lower Price
Chaince Digital Holdings Inc.'s (NASDAQ:CD) stock price has dropped 36% in the previous week, but insiders who sold US$174k in stock over the past year have had less luck. The average selling price of US$12.69 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Chaince Digital Holdings
The Chief Strategy Officer & Director, Wilfred Daye, made the biggest insider sale in the last 12 months. That single transaction was for US$62k worth of shares at a price of US$13.78 each. 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 (US$6.14). So it may not shed much light on insider confidence at current levels. Wilfred Daye was the only individual insider to sell shares in the last twelve months.
Wilfred Daye divested 13.74k shares over the last 12 months at an average price of US$12.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Chaince Digital Holdings
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Insiders At Chaince Digital Holdings Have Sold Stock Recently
The last quarter saw substantial insider selling of Chaince Digital Holdings shares. In total, Chief Strategy Officer & Director Wilfred Daye dumped US$174k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Chaince Digital Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Chaince Digital Holdings insiders own about US$103m worth of shares (which is 24% of the company). 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 Does This Data Suggest About Chaince Digital Holdings Insiders?
An insider sold Chaince Digital Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chaince Digital Holdings. For instance, we've identified 4 warning signs for Chaince Digital Holdings (3 can't be ignored) you should be aware of.
But note: Chaince Digital Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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