Income Asset Management Group's Insiders' Timely Sale May Have Helped Mitigate 10.0% Dip in Share Price
Over the past year, insiders sold AU$1.5m worth of Income Asset Management Group Limited (ASX:IAM) stock at an average price of AU$0.023 per share allowing them to get the most out of their money. The company’s market cap plunged by AU$2.8m after price dropped by 10.0% last week but insiders were able to limit their loss to an extent.
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.
Income Asset Management Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Brook Adcock, for AU$635k worth of shares, at about AU$0.028 per share. So we know that an insider sold shares at around the present share price of AU$0.027. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Brook Adcock was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 9.33m shares worth AU$273k. But they sold 67.00m shares for AU$1.5m. Brook Adcock divested 67.00m shares over the last 12 months at an average price of AU$0.023. 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!
Check out our latest analysis for Income Asset Management Group
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Income Asset Management Group Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Income Asset Management Group. Executive Director Craig Swanger shelled out AU$23k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Does Income Asset Management Group Boast High Insider Ownership?
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. Insiders own 13% of Income Asset Management Group shares, worth about AU$3.3m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Income Asset Management Group Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by Income Asset Management Group insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Income Asset Management Group has 3 warning signs (and 1 which is significant) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.