How Much Are Indoor Skydive Australia Group Limited (ASX:IDZ) Insiders Taking Off The Table?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Indoor Skydive Australia Group Limited (ASX:IDZ).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Indoor Skydive Australia Group

The Last 12 Months Of Insider Transactions At Indoor Skydive Australia Group

The insider, Alexander Beard, made the biggest insider sale in the last 12 months. That single transaction was for AU$466k worth of shares at a price of AU$0.023 each. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 AU$0.014. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Alexander Beard.

Over the last year, we can see that insiders have bought 11.50m shares worth AU$18k. But they sold 20.00m shares for AU$466k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Indoor Skydive Australia Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Indoor Skydive Australia Group

Many investors like to check how much of a company is owned by 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. Indoor Skydive Australia Group insiders own about AU$1.2m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Indoor Skydive Australia Group Insiders?

It doesn't really mean much that no insider has traded Indoor Skydive Australia Group shares in the last quarter. We don't take much encouragement from the transactions by Indoor Skydive Australia Group insiders. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Indoor Skydive Australia Group (2 are concerning!) and we strongly recommend you look at these before investing.

But note: Indoor Skydive Australia Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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