Some IBO Technology Company Limited (HKG:2708) shareholders may be a little concerned to see that the Executive Chairman, Tse Ming Lai, recently sold a substantial HK$54m worth of stock at a price of HK$2.10 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for IBO Technology

IBO Technology Insider Transactions Over The Last Year

In fact, the recent sale by Tse Ming Lai was the biggest sale of IBO Technology shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$2.86). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Tse Ming Lai's stake.

In the last twelve months insiders purchased 18.00m shares for HK$47m. On the other hand they divested 42.20m shares, for HK$90m. In total, IBO Technology insiders sold more than they bought over the last year. The average sell price was around CN¥2.14. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like IBO Technology better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that IBO Technology insiders own 47% of the company, worth about HK$842m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About IBO Technology Insiders?

The stark truth for IBO Technology is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that IBO Technology is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

Of course IBO Technology 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, but not derivative transactions.

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