This IPH Insider Reduced Their Stake By 23%

Insiders were net sellers of IPH Limited's (ASX:IPH ) stock during the past year. That is, insiders sold more stock than they bought.

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.

Check out 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$457k worth of shares, at about AU$5.08 per share. 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 (AU$4.40). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Andrew Blattman.

In the last twelve months insiders purchased 27.96k shares for AU$150k. But they sold 90.00k shares for AU$457k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

IPH Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at IPH. Independent Non-Executive Director Vicki Carter shelled out AU$78k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of IPH shares, worth about AU$8.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At IPH Tell Us?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. 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. While conducting our analysis, we found that IPH has 1 warning sign and it would be unwise to ignore this.

Of course IPH 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.