IPH Insider Lowered Holding By 29% During Last Year

From what we can see, insiders were net sellers in IPH Limited's (ASX:IPH ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for IPH

The Last 12 Months Of Insider Transactions At IPH

Over the last year, we can see that the biggest insider sale was by the CEO, MD & Director, Andrew Blattman, for AU$646k worth of shares, at about AU$6.46 per share. That means that even when the share price was slightly below the current price of AU$6.48, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 29% of Andrew Blattman's holding. Andrew Blattman was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 27.56k shares for AU$181k. But they sold 160.00k shares for AU$1.1m. Andrew Blattman divested 160.00k shares over the last 12 months at an average price of AU$6.58. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does IPH Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of IPH shares, worth about AU$11m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About IPH Insiders?

The fact that there have been no IPH insider transactions recently certainly doesn't bother us. Our analysis of IPH insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IPH. While conducting our analysis, we found that IPH has 3 warning signs and it would be unwise to ignore them.

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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.