We wouldn't blame IMAX Corporation (NYSE:IMAX) shareholders if they were a little worried about the fact that Pablo Calamera, the Executive VP & CTO recently netted about US$705k selling shares at an average price of US$34.23. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At IMAX

The CEO & Director, Richard Gelfond, made the biggest insider sale in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$27.11 each. That means that even when the share price was below the current price of US$35.13, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Richard Gelfond's holding.

In the last year IMAX 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!

I will like IMAX better if I see some big insider buys.

Does IMAX Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. It's great to see that IMAX insiders own 19% of the company, worth about US$374m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About IMAX Insiders?

Insiders sold IMAX shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, IMAX makes money, and is growing profits. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course IMAX may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.