Selling ikeGPS Group Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders
Even though ikeGPS Group Limited (NZSE:IKE) has fallen by 12% over the past week , insiders who sold NZ$4.0m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of NZ$0.99 is still below the current share price.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
ikeGPS Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Scobie Dickinson Ward, for NZ$4.0m worth of shares, at about NZ$1.11 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is NZ$0.88. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Scobie Dickinson Ward.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 ikeGPS Group
I will like ikeGPS Group 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.
Does ikeGPS Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. ikeGPS Group insiders own about NZ$40m worth of shares. That equates to 23% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About ikeGPS Group Insiders?
It doesn't really mean much that no insider has traded ikeGPS Group shares in the last quarter. Still, the insider transactions at ikeGPS Group in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of ikeGPS Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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