Have Insiders Sold Income Asset Management Group Shares Recently?

We'd be surprised if Income Asset Management Group Limited (ASX:IAM) shareholders haven't noticed that an insider, Brook Adcock, recently sold AU$363k worth of stock at AU$0.022 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.

See our latest analysis for Income Asset Management Group

Income Asset Management Group Insider Transactions Over The Last Year

In fact, the recent sale by Brook Adcock was the biggest sale of Income Asset Management Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.03. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 16% of Brook Adcock's holding.

Happily, we note that in the last year insiders paid AU$250k for 8.33m shares. But they sold 26.47m shares for AU$661k. Brook Adcock divested 26.47m shares over the last 12 months at an average price of AU$0.025. 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 Income Asset Management Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Income Asset Management Group Boast High 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. 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 Income Asset Management Group insiders own 20% of the company, worth about AU$5.5m. 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 Income Asset Management Group Insiders?

The stark truth for Income Asset Management Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. Case in point: We've spotted 5 warning signs for Income Asset Management Group you should be aware of, and 2 of them are potentially serious.

Of course Income Asset Management 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.