Icon Culture Global Insider Buyers See Boost After Market Cap Rose HK$26m

Last week, Icon Culture Global Company Limited (HKG:8500) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a HK$26m increase in the company's market worth, implying a 74% gain on their initial purchase. As a result, the stock they originally bought for CN¥32.3m is now worth CN¥56.1m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Icon Culture Global

The Last 12 Months Of Insider Transactions At Icon Culture Global

In the last twelve months, the biggest single sale by an insider was when the Founder & Executive Chairman, Tse To Chow, sold HK$29m worth of shares at a price of HK$0.68 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.51. So it may not tell us anything about how insiders feel about the current share price. Tse To Chow was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid HK$32m for 110.06m shares. But they sold 42.75m shares for HK$29m. In the last twelve months there was more buying than selling by Icon Culture Global insiders. The average buy price was around HK$0.29. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Icon Culture Global is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Icon Culture Global Insiders Bought Stock Recently

Over the last quarter, Icon Culture Global insiders have spent a meaningful amount on shares. In total, insiders bought HK$23m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Icon Culture Global Boast High Insider Ownership?

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 Icon Culture Global insiders own 48% of the company, worth about HK$105m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Icon Culture Global Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Icon Culture Global. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Icon Culture Global. Case in point: We've spotted 5 warning signs for Icon Culture Global you should be aware of, and 2 of them are concerning.

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.