Non-Executive Chairman Of IBEX Sold 26% Of Their Shares

Some IBEX Limited (NASDAQ:IBEX) shareholders may be a little concerned to see that the Non-Executive Chairman, Mohammedulla Khaishgi, recently sold a substantial US$1.7m worth of stock at a price of US$25.02 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for IBEX

IBEX Insider Transactions Over The Last Year

Notably, that recent sale by Mohammedulla Khaishgi is the biggest insider sale of IBEX shares that we've seen in the last year. That means that even when the share price was below the current price of US$27.30, 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.

In the last year IBEX insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Insiders own 13% of IBEX shares, worth about US$48m. 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?

Insiders sold IBEX shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, IBEX makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Case in point: We've spotted 1 warning sign for IBEX you should be aware of.

Of course IBEX 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.