As IMCD N.V.'s (AMS:IMCD)) market cap dropped by €589m, insiders who sold €681k worth of stock were able to offset their losses

Over the past year, insiders sold €681k worth of IMCD N.V. (AMS:IMCD) stock at an average price of €147 per share allowing them to get the most out of their money. After the stock price dropped 7.1% last week, the company's market value declined by €589m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for IMCD

The Last 12 Months Of Insider Transactions At IMCD

Over the last year, we can see that the biggest insider sale was by the CFO & Member of Management Board, Hans J. Kooijmans, for €681k worth of shares, at about €147 per share. So what is clear is that an insider saw fit to sell at around the current price of €136. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Hans J. Kooijmans.

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: insiders have been buying them).

Insiders At IMCD Have Sold Stock Recently

The last quarter saw substantial insider selling of IMCD shares. Specifically, CFO & Member of Management Board Hans J. Kooijmans ditched €681k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. IMCD insiders own 1.7% of the company, currently worth about €134m 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.

So What Do The IMCD Insider Transactions Indicate?

An insider sold IMCD shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, IMCD 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IMCD. For example - IMCD has 2 warning signs we think you should be aware of.

But note: IMCD 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, but not derivative transactions.

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

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.