We often see insiders buying shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of stock prices declining sharply after shareholders sold shares. So let’s take a look at whether insiders have been buying or selling shares Integral Diagnostics Limited (ASX: IDX).
What is an inside sale?
It is quite common to see company owners, such as board members, trading in company stocks, from time to time. However, most countries want the company to disclose such transactions to the market.
Internal affairs are not the most important thing when it comes to long-term investment. But it is completely logical to keep tabs on what insiders do. As Peter Lynch put it, ‘insiders may sell their shares for a number of reasons, but they buy them for just one: they think the price will rise’.
Check out our latest analysis for Integral Diagnostics
The last 12 months of internal shifts at Integral Diagnostics
Executive Director Chien Ho made the biggest sales show in the last 12 months. That same deal was for AU $ 266k worth of shares priced at AU $ 4.43 per head. That means that even when the share price was lower than the current AU $ 4.68 price, a messenger wanted to bring in some shares. As a general rule we think it is frustrating when insiders sell below the current price, because it shows that they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it is only a weak signal. It is worth noting that this sale was only 2.8% of Chien Ho’s assets. Chien Ho was the sole sole proprietor of sales over the past year.
Chien Ho ditched 90.00k shares over the year. The average price per installment was AU $ 4.32. Below is a visual overview of internal transactions (with companies and individuals) over the past 12 months. If you want to find out who just sold, for how much, and when, just click on the graph below!
For those who love to find it winning investments seo free of charge the ticket might just be a list of companies that have been growing with recent insider buying.
Does Integral Diagnostics Have High Internal Property?
I like to look at the number of shares held in a company, to help inform my opinion on how connected they are to intellectual property. Typically, the higher the insider ownership, the more likely insiders will be motivated to build the company in the long run. Insiders own 4.6% of Integral Diagnostics shares, valued at approximately AU $ 42m. We have certainly seen higher levels of internal ownership elsewhere, but these holdings are sufficient to suggest alignment between intellectuals and the other shareholders.
So What Do the Insider Diagnostics Insider Features Reveal?
With the recent absence of issues within Integral Diagnostics it certainly does not bother us. We don’t get much confidence from the dealings with Integral Diagnostics psychologists. But it’s good to see that the company has shares within the company. So those insider deals can help us build a dissertation on the stock, but it ‘s also worth knowing about the risks facing this company. Every company has risks, and we’ve seen 2 warning signs for Integral Diagnostics you should know about it.
of course Integral Diagnostics may not be the best stock to buy. So you might want to see this free of charge a collection of high quality companies.
For the purposes of this article, insiders are those persons who report their actions to the relevant regulatory body. We currently account for open market transactions and private settlements, but not for transmission transactions.
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