Lynas Rare Earths Insider Lowered Holding By 20% During Last Year

Viewing insider transactions for Lynas Rare Earths Limited's (ASX:LYC ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Lynas Rare Earths

Lynas Rare Earths Insider Transactions Over The Last Year

The MD, CEO & Director, Amanda Lacaze, made the biggest insider sale in the last 12 months. That single transaction was for AU$4.0m worth of shares at a price of AU$7.09 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$6.15. So it may not shed much light on insider confidence at current levels. Amanda Lacaze was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 41.29k shares worth AU$240k. On the other hand they divested 569.84k shares, for AU$4.0m. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Lynas Rare Earths better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Lynas Rare Earths Insiders Bought Stock Recently

Over the last quarter, Lynas Rare Earths insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$240k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Lynas Rare Earths insiders own about AU$23m worth of shares. That equates to 0.4% 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.

What Might The Insider Transactions At Lynas Rare Earths Tell Us?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Lynas Rare Earths insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Lynas Rare Earths.

Of course Lynas Rare Earths 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.

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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.