Income Asset Management Group Limited (ASX:IAM) drops to AU$42m and insiders who purchased earlier this year lose another AU$40k

The recent 12% drop in Income Asset Management Group Limited's (ASX:IAM) stock could come as a blow to insiders who purchased AU$115k worth of stock at an average buy price of AU$0.23 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$75k, which is not what they expected.

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.

Check out our latest analysis for Income Asset Management Group

The Last 12 Months Of Insider Transactions At Income Asset Management Group

The Chief Executive Officer Jonathan Lechte made the biggest insider purchase in the last 12 months. That single transaction was for AU$115k worth of shares at a price of AU$0.23 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.15). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Jonathan Lechte was the only individual insider to buy during the last year.

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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Income Asset Management Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Income Asset Management Group insiders own 48% of the company, worth about AU$20m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Income Asset Management Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Income Asset Management Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Income Asset Management Group insiders feel good about the company's future. While we like knowing 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. Our analysis shows 5 warning signs for Income Asset Management Group (3 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: Income Asset Management 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. 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.