Insiders At IPD Group Sold AU$5.8m Of Stock Potentially Indicating Weakness

Even though IPD Group Limited (ASX:IPG) stock gained 13% last week, insiders who sold AU$5.8m worth of stock over the past year are probably better off. Selling at an average price of AU$5.07, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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IPD Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director of Strategic Development & Executive Director, Mohamed Yoosuff, sold AU$5.1m worth of shares at a price of AU$5.10 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$3.55. So it is hard to draw any strong conclusion from it. Notably Mohamed Yoosuff was also the biggest buyer, having purchased AU$3.8m worth of shares.

All up, insiders sold more shares in IPD Group than they bought, over the last year. 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!

Check out our latest analysis for IPD Group

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Insider Ownership Of IPD Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that IPD Group insiders own 26% of the company, worth about AU$98m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About IPD Group Insiders?

The fact that there have been no IPD Group insider transactions recently certainly doesn't bother us. Still, the insider transactions at IPD Group in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for IPD Group.

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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.