We'd be surprised if IBO Technology Company Limited (HKG:2708) shareholders haven't noticed that the Executive Chairman, Tse Ming Lai, recently sold HK$1.6m worth of stock at HK$0.14 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.
See our latest analysis for IBO Technology
IBO Technology Insider Transactions Over The Last Year
Notably, that recent sale by Executive Chairman Tse Ming Lai was not the only time they sold IBO Technology shares this year. Earlier in the year, they fetched HK$1.50 per share in a -HK$30m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$0.14. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 11.98m shares for HK$15m. But insiders sold 102.35m shares worth HK$52m. All up, insiders sold more shares in IBO Technology than they bought, over the last year. The average sell price was around CN¥0.51. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (HK$0.14), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of IBO Technology
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 34% of IBO Technology shares, worth about HK$34m. 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 Does This Data Suggest About IBO Technology Insiders?
Unfortunately, there has been more insider selling of IBO Technology stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for IBO Technology you should be aware of, and 1 of them is potentially serious.
But note: IBO Technology 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.