Insider Sellers Might Regret Selling Icon Culture Global Shares at a Lower Price Than Current Market Value

Despite the fact that Icon Culture Global Company Limited's (HKG:8500) value has dropped 15% in the last week insiders who sold CN¥29m worth of stock in the past 12 months have had less success. Given that the average selling price of CN¥0.68 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Icon Culture Global

Icon Culture Global Insider Transactions Over The Last Year

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. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.56. 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 over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Icon Culture Global insiders own 52% of the company, currently worth about HK$63m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Icon Culture Global Tell Us?

The fact that there have been no Icon Culture Global insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Icon Culture Global, we can't say the same about the selling of shares. 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 example, Icon Culture Global has 6 warning signs (and 3 which are concerning) we think you should know about.

Of course Icon Culture Global 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com