Insider Sellers Might Regret Selling ISDN Holdings Shares at a Lower Price Than Current Market Value
Even though ISDN Holdings Limited (SGX:I07) has fallen by 12% over the past week , insiders who sold S$1.5m worth of stock over the past year have had less luck. The average selling price of S$0.73 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
ISDN Holdings Insider Transactions Over The Last Year
The Senior VP of PRC Operations & Executive Director, Deyang Kong, made the biggest insider sale in the last 12 months. That single transaction was for S$1.5m worth of shares at a price of S$0.73 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (S$0.53). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Deyang Kong.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for ISDN Holdings
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of ISDN Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. ISDN Holdings insiders own about S$87m worth of shares. That equates to 36% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At ISDN Holdings Tell Us?
It doesn't really mean much that no insider has traded ISDN Holdings shares in the last quarter. Our analysis of ISDN Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for ISDN Holdings.
But note: ISDN Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.