Don't Ignore The Insider Selling In Intellicheck

We'd be surprised if Intellicheck, Inc. (NASDAQ:IDN) shareholders haven't noticed that the CFO & COO, Jeffrey Ishmael, recently sold US$102k worth of stock at US$3.68 per share. On the bright side, that sale was only 9.7% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Intellicheck

Intellicheck Insider Transactions Over The Last Year

Notably, that recent sale by Jeffrey Ishmael is the biggest insider sale of Intellicheck shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.13). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 36.42k shares for US$69k. But they sold 29.96k shares for US$107k. Over the last year we saw more insider selling of Intellicheck shares, than buying. The average sell price was around US$3.57. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$3.13). 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!

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Does Intellicheck Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Intellicheck insiders own about US$4.5m worth of shares (which is 7.2% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Intellicheck Tell Us?

The stark truth for Intellicheck is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. 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, Intellicheck has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

But note: Intellicheck 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 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.

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