One TMK Energy Insider Has Reduced Their Stake

Viewing insider transactions for TMK Energy Limited's (ASX:TMK ) 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 insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At TMK Energy

In the last twelve months, the biggest single sale by an insider was when the Advisor to the Board, Tsetsen Zantav, sold AU$300k worth of shares at a price of AU$0.003 per share. That means that an insider was selling shares at below the current price (AU$0.003). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 6.1% of Tsetsen Zantav's holding. Tsetsen Zantav was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$40k for 15.89m shares. But insiders sold 100.00m shares worth AU$300k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for TMK Energy

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 32% of TMK Energy shares, worth about AU$9.7m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About TMK Energy Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by TMK Energy insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TMK Energy. To help with this, we've discovered 5 warning signs (4 shouldn't be ignored!) that you ought to be aware of before buying any shares in TMK Energy.

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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.