This Insider Has Just Sold Shares In IBEX

We wouldn't blame IBEX Limited (NASDAQ:IBEX) shareholders if they were a little worried about the fact that Mohammedulla Khaishgi, the Non-Executive Chairman recently netted about US$540k selling shares at an average price of US$22.51. However, that sale only accounted for 7.8% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for IBEX

IBEX Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Shuja Keen, sold US$791k worth of shares at a price of US$21.21 per share. That means that an insider was selling shares at slightly below the current price (US$22.01). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 28% of Shuja Keen's holding.

Insiders in IBEX didn't buy any shares in 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 insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does IBEX Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IBEX insiders own about US$40m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At IBEX Tell Us?

Insiders haven't bought IBEX stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that IBEX is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for IBEX you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.