Don't Ignore The Insider Selling In TMK Energy

We'd be surprised if TMK Energy Limited (ASX:TMK) shareholders haven't noticed that the Advisor to the Board, Tsetsen Zantav, recently sold AU$300k worth of stock at AU$0.003 per share. On the bright side, that sale was only 6.1% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for TMK Energy

TMK Energy Insider Transactions Over The Last Year

In fact, the recent sale by Tsetsen Zantav was the biggest sale of TMK Energy shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$0.0035, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.1% of Tsetsen Zantav's holding.

Over the last year, we can see that insiders have bought 40.89m shares worth AU$140k. But insiders sold 100.00m shares worth AU$300k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like TMK Energy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. TMK Energy insiders own about AU$8.8m worth of shares. That equates to 32% 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 TMK Energy Tell Us?

The insider sales have outweighed the insider buying, at TMK Energy, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 6 warning signs for TMK Energy you should be aware of, and 4 of these are significant.

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.