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This Insider Has Just Sold Shares In ICO Group Limited (HKG:1460) – Simply Wall St


We wouldn’t blame ICO Group Limited (HKG:1460) shareholders if they were a little worried about the fact that Chuen Lau, a company insider, recently netted about HK$13m selling shares at an average price of HK$0.05. Probably the most concerning element of the whole transaction is that the dump amounted to 100% of their entire holding.

See our latest analysis for ICO Group

The Last 12 Months Of Insider Transactions At ICO Group

Notably, that recent sale by Chuen Lau is the biggest insider sale of ICO Group shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even below the current price of HK$0.052. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was 100% of Chuen Lau’s stake.

In the last year ICO Group insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:1460 Recent Insider Trading, December 12th 2019
SEHK:1460 Recent Insider Trading, December 12th 2019

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Insider Ownership of ICO Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ICO Group insiders own 43% of the company, currently worth about HK$120m based on the recent share price. 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 Do The ICO Group Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. 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. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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