Insiders Could Have Profited By Holding onto Infinity Logistics and Transport Ventures Shares Despite 14% Drop

Even though Infinity Logistics and Transport Ventures Limited (HKG:1442) has fallen by 14% over the past week , insiders who sold RM10m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of RM0.35 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Infinity Logistics and Transport Ventures Insider Transactions Over The Last Year

The Chairman & CEO, Kong Chan, made the biggest insider sale in the last 12 months. That single transaction was for HK$3.5m worth of shares at a price of HK$0.35 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.27. So it may not shed much light on insider confidence at current levels. Kong Chan was the only individual insider to sell shares in the last twelve months.

Kong Chan ditched 30.00m shares over the year. The average price per share was RM0.35. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Infinity Logistics and Transport Ventures

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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. Infinity Logistics and Transport Ventures insiders own about HK$163m worth of shares. That equates to 29% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Infinity Logistics and Transport Ventures Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Infinity Logistics and Transport Ventures insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Infinity Logistics and Transport Ventures has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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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.