Keep An Eye On ikeGPS Group As Insider & Major Shareholder Stock Selling Hits NZ$3.8m

While ikeGPS Group Limited ( NZSE:IKE ) shareholders have enjoyed a good week with stock up 12%, they need remain vigilant. Even though stock prices were relatively low, insiders and major shareholders elected to sell NZ$3.8m worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ikeGPS Group

ikeGPS Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the major shareholder, Kevin Douglas, for NZ$3.6m worth of shares, at about NZ$0.90 per share.

Kevin Douglas is not affiliated with ikeGPS but his considerable holding in the company makes this transaction noteworthy in our eyes.

We generally don't like to see major shareholders 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 NZ$0.55. 

In total, ikeGPS Group insiders and major shareholders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each significant transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Are ikeGPS Group Insiders Buying Or Selling?

There was only a small bit of insider buying, worth NZ$6.0k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of ikeGPS Group

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. ikeGPS Group insiders own 49% of the company, currently worth about NZ$43m 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 Does This Data Suggest About ikeGPS Group Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. While we gain confidence from high insider ownership of ikeGPS Group, we can't say the same about their transactions in the last year, in the absence of further purchases. 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. To help with this, we've discovered 4 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in ikeGPS Group.

Of course ikeGPS Group 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.