By selling AU$218k worth of Sunrise Energy Metals Limited (ASX:SRL) stock at an average sell price of AU$2.73 over the last year, insiders seemed to have made the most of their holdings. The company’s market valuation decreased by AU$25m after the stock price dropped 14% over the past week, but insiders were spared from painful losses.
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.
View our latest analysis for Sunrise Energy Metals
Sunrise Energy Metals Insider Transactions Over The Last Year
The MD, CEO & Executive Director, Sam Riggall, made the biggest insider sale in the last 12 months. That single transaction was for AU$218k worth of shares at a price of AU$2.76 each. 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 AU$1.75. So it may not shed much light on insider confidence at current levels. Sam Riggall was the only individual insider to sell shares in the last twelve months.
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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 17% of Sunrise Energy Metals shares, worth about AU$27m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Sunrise Energy Metals Tell Us?
The fact that there have been no Sunrise Energy Metals insider transactions recently certainly doesn’t bother us. Our analysis of Sunrise Energy Metals insider transactions leaves us cautious. But it’s good to see that insiders own shares in the company. 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 – Sunrise Energy Metals has 3 warning signs we think you should be aware of.
But note: Sunrise Energy Metals 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, but not derivative transactions.
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Find out whether Sunrise Energy Metals is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
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