This Insider Has Just Sold Shares In IBO Technology

We'd be surprised if IBO Technology Company Limited (HKG:2708) shareholders haven't noticed that the Executive Chairman, Tse Ming Lai, recently sold HK$1.6m worth of stock at HK$0.14 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.

View our latest analysis for IBO Technology

The Last 12 Months Of Insider Transactions At IBO Technology

In fact, the recent sale by Executive Chairman Tse Ming Lai was not their only sale of IBO Technology shares this year. They previously made an even bigger sale of -HK$30m worth of shares at a price of HK$1.50 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.14). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid HK$15m for 11.98m shares. But insiders sold 102.35m shares worth HK$52m. Over the last year we saw more insider selling of IBO Technology shares, than buying. The sellers received a price of around CN¥0.51, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is HK$0.14). 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!

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Does IBO Technology Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that IBO Technology insiders own 34% of the company, worth about HK$34m. 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 IBO Technology Insiders?

The insider sales have outweighed the insider buying, at IBO Technology, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. Be aware that IBO Technology is showing 4 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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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.