i-CABLE Communications Drops To HK$0.045, Yet Insiders May Have Sold Too Early

i-CABLE Communications Limited's (HKG:1097) stock price has dropped 18% in the previous week, but insiders who sold HK$2.6m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of HK$0.11 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At i-CABLE Communications

Over the last year, we can see that the biggest insider sale was by the insider, Hung Sang Ng, for HK$2.2m worth of shares, at about HK$0.13 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.045. So it may not tell us anything about how insiders feel about the current share price.

In the last year i-CABLE Communications insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for i-CABLE Communications

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i-CABLE Communications Insiders Are Selling The Stock

We have seen a bit of insider selling at i-CABLE Communications, over the last three months. insider Lai King Ng only netted HK$387k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership Of i-CABLE Communications

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that i-CABLE Communications insiders own 9.9% of the company, worth about HK$32m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About i-CABLE Communications Insiders?

An insider hasn't bought i-CABLE Communications stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that i-CABLE Communications is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning...

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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.