Insiders Who Sold AU$1.5m Of Income Asset Management Group Made The Right Call

While Income Asset Management Group Limited (ASX:IAM) shareholders have had a good week with the stock up 10.0%, they shouldn't let their guards down. The fact that insiders chose to dispose of AU$1.5m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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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. That means that even when the share price was below the current price of AU$0.033, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 40% of Brook Adcock's holding. Brook Adcock was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 4.33m shares for AU$123k. On the other hand they divested 67.00m shares, for AU$1.5m. Brook Adcock ditched 67.00m shares over the year. The average price per share was AU$0.023. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Income Asset Management Group

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Insider Ownership Of Income Asset Management 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. Our data indicates that Income Asset Management Group insiders own about AU$4.0m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Income Asset Management Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Income Asset Management Group insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Income Asset Management Group. At Simply Wall St, we found 2 warning signs for Income Asset Management Group that deserve your attention before buying any shares.

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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.