Insiders Enjoy CN¥34m Return After Buying Icon Culture Global Stock

Icon Culture Global Company Limited (HKG:8500) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After taking the recent loss into consideration, the CN¥32.3m worth of stock they bought is now worth CN¥66.0m, indicating that their investment yielded a positive return.

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.

View 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 insider, Tse To Chow, sold HK$29m worth of shares at a price of HK$0.68 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.60). 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.

Over the last year, we can see that insiders have bought 110.06m shares worth HK$32m. On the other hand they divested 42.75m shares, for HK$29m. Overall, Icon Culture Global insiders were net buyers during the last year. Their average price was about HK$0.29. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Icon Culture Global Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Icon Culture Global insiders own 48% of the company, currently worth about HK$124m 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 Icon Culture Global Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Icon Culture Global insiders feel good about the company's future. 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. When we did our research, we found 5 warning signs for Icon Culture Global (2 are a bit concerning!) that we believe deserve your full attention.

But note: Icon Culture Global may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.