Have IBEX Insiders Been Selling Stock?

Anyone interested in IBEX Limited (NASDAQ:IBEX) should probably be aware that the Chief People Officer, Paul Inson, recently divested US$105k worth of shares in the company, at an average price of US$28.59 each. That sale was 21% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At IBEX

The Non-Executive Chairman, Mohammedulla Khaishgi, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$25.74 each. That means that even when the share price was below the current price of US$28.73, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 26% of Mohammedulla Khaishgi's holding.

IBEX insiders didn't buy any shares 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for IBEX

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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. It appears that IBEX insiders own 12% of the company, worth about US$45m. 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 Do The IBEX Insider Transactions Indicate?

An insider sold IBEX shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since IBEX is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - IBEX has 1 warning sign we think you should be aware of.

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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.