Michael Sainsbury Bought 1.9% More Shares In IPD Group

Whilst it may not be a huge deal, we thought it was good to see that the IPD Group Limited (ASX:IPG) CEO & Executive Director, Michael Sainsbury, recently bought AU$100k worth of stock, for AU$3.93 per share. However, it only increased their shares held by 1.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for IPD Group

The Last 12 Months Of Insider Transactions At IPD Group

In the last twelve months, the biggest single sale by an insider was when the insider, Geoffrey Bacon, sold AU$9.8m worth of shares at a price of AU$3.14 per share. That means that even when the share price was below the current price of AU$4.78, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 29% of Geoffrey Bacon's holding.

Over the last year we saw more insider selling of IPD Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IPD Group insiders own 31% of the company, currently worth about AU$150m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About IPD Group Insiders?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, IPD Group insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for IPD Group (1 is significant) you should be aware of.

Of course IPD Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.