Insider Sellers Might Regret Selling Income Asset Management Group Shares at a Lower Price Than Current Market Value

Income Asset Management Group Limited's (ASX:IAM) value has fallen 15% in the last week, but insiders who sold AU$1.8m worth of stock over the last year have had less success. Given that the average selling price of AU$0.13 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

View our latest analysis for Income Asset Management Group

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

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Brook Adcock, for AU$910k worth of shares, at about AU$0.13 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$0.064). So it may not tell us anything about how insiders feel about the current share price. Brook Adcock was the only individual insider to sell over the last year.

Brook Adcock sold a total of 14.00m shares over the year at an average price of AU$0.13. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Income Asset Management Group Have Bought Stock Recently

There was some insider buying at Income Asset Management Group over the last quarter. Executive Chairman John Nantes shelled out AU$20k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does Income Asset Management Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Income Asset Management Group insiders own 40% of the company, currently worth about AU$8.6m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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). Overall the buying isn't worth writing home about. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Income Asset Management Group insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Income Asset Management Group. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Income Asset Management Group.

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.