We have lost count of the number of times insiders have racked up shares in a company that continues to improve dramatically. On the other hand, we would be remiss not to mention that insider selling is known to precede tough times for a business. Shareholders might therefore want to know if any insiders bought or sold shares of Integrated Payment Technologies Limited (ASX: IP1).
What is insider buying?
Most investors know that it’s okay for business leaders, such as board directors, to buy and sell company stock. However, there are rules governing insider trading and certain disclosures are required.
Insider trading is not the most important thing when it comes to long-term investing. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Columbia University study found that “insiders are more likely to engage in open market purchases of their own company’s shares when the company is about to reveal new deals.” with customers and suppliers ”.
Check out our latest analysis of integrated payment technologies
Integrated payment technologies Insider trading in the past year
Executive Chairman Donald Sharp had the biggest insider sale in the past 12 months. This single transaction involved AU $ 197,000 in shares at a price of AU $ 0.02 each. So it’s clear that an insider wanted to take money off the table, even below the current price of AU $ 0.031. When an insider sells below the current price, it suggests that he considers that lower price to be fair. This makes us wonder what they think of the recent (higher) rating. While insider selling is not a positive sign, we cannot be sure if this means that insiders think stocks are fully valued, so it is only a weak sign. This one-time sale only represented 34% of Donald Sharp’s stake. Donald Sharp has been the only individual insider selling in the past year.
Donald Sharp has sold 20.00 million shares in the past 12 months at an average price of AU $ 0.02. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
If you like to buy stocks that insiders buy rather than sell them, you might love this free list of companies. (Hint: insiders bought them).
For an ordinary shareholder, it is worth checking the number of shares held by insiders of the company. Strong insider ownership often makes company executives more attentive to the interests of shareholders. Insiders own 28% of the shares of Integrated Payment Technologies, valued at approximately AU $ 5.0 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
What might insider trading from embedded payment technologies tell us?
We certainly don’t mind the fact that there haven’t been any insider trading from Integrated Payment Technologies recently. Transactions carried out by Insiders of Integrated Payment Technologies do not encourage us much. But it’s good to see that insiders own shares in the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Every business has risks, and we’ve spotted 5 warning signs for integrated payment technologies (2 of which cannot be ignored!) that you should know.
If you’d rather consult with another company – one with potentially superior finances – don’t miss this free list of interesting companies, which have high return on equity and low debt.
For the purposes of this article, insiders are the people who report their transactions to the relevant regulatory body. We currently record open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It is not a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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