Anyone interested in IMS Group Holdings Limited (HKG:8136) should probably be aware that a company insider, Hung Ying, recently divested HK$885k worth of shares in the company, at an average price of HK$0.05 each. That sale was 40% of their holding, so it does make us raise an eyebrow.

See our latest analysis for IMS Group Holdings

IMS Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Wun Yeung, for HK$9.2m worth of shares, at about HK$0.054 per share. So what is clear is that an insider saw fit to sell at around the current price of HK$0.051. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Wun Yeung was also the biggest buyer, having purchased HK$4.9m worth of shares.

Happily, we note that in the last year insiders paid HK$4.9m for 90.00m shares. But they sold 273.93m shares for HK$15m. In total, IMS Group Holdings insiders sold more than they bought 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does IMS Group Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. IMS Group Holdings insiders own about HK$30m worth of shares (which is 58% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About IMS Group Holdings Insiders?

An insider sold IMS Group Holdings shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. Our analysis shows 4 warning signs for IMS Group Holdings (1 is significant!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.