IPE Group Insiders Who Sold Avert HK$126m Market Cap Dip

Insiders at IPE Group Limited (HKG:929) sold HK$21m worth of stock at an average price of HK$0.42 a share over the past year, making the most of their investment. After the stock price dropped 12% last week, the company's market value declined by HK$126m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At IPE Group

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Guangsheng Zeng bought HK$21m worth of shares at a price of HK$0.41 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.86. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Siu On Chui sold a total of 51.06m shares over the year at an average price of HK$0.42. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for IPE Group

I will like IPE 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.

IPE Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at IPE Group. In total, insider Siu On Chui sold HK$996k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does IPE Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that IPE Group insiders own 16% of the company, worth about HK$148m. 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 IPE Group Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, IPE Group makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For instance, we've identified 4 warning signs for IPE Group (2 are a bit concerning) you should be aware of.

Of course IPE 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.