Yahoo Finance Multiple insiders bought INOVIQ Ltd (ASX:IIQ) stock earlier this year, a positive sign for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in INOVIQ Ltd's (ASX:IIQ) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for INOVIQ
The Last 12 Months Of Insider Transactions At INOVIQ
The insider, Irmgard Irminger-Finger, made the biggest insider sale in the last 12 months. That single transaction was for AU$91k worth of shares at a price of AU$1.82 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.57. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Irmgard Irminger-Finger.
In the last twelve months insiders purchased 100.00k shares for AU$91k. But they sold 50.00k shares for AU$91k. Overall, INOVIQ insiders were net buyers during the last year. The average buy price was around AU$0.91. This is nice to see since it implies that insiders might see value around current prices. 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!
INOVIQ is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at INOVIQ Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at INOVIQ. Independent Non-Executive Director Philip Powell bought AU$29k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of INOVIQ shares, worth about AU$8.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The INOVIQ Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in INOVIQ and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing INOVIQ. Be aware that INOVIQ is showing 5 warning signs in our investment analysis, and 2 of those are potentially serious...
But note: INOVIQ 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, 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.
