TMK Energy Sees Insider Stock Selling

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 would consider it foolish to ignore insider transactions altogether.

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TMK Energy Insider Transactions Over The Last Year

The Advisor to the Board, Tsetsen Zantav, made the biggest insider sale in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.003 each. That means that even when the share price was slightly below the current price of AU$0.003, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this 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.

In the last twelve months insiders purchased 11.89m shares for AU$24k. But insiders sold 114.33m shares worth AU$343k. Tsetsen Zantav sold a total of 114.33m shares over the year at an average price of AU$0.003. 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!

View our latest analysis for TMK Energy

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TMK Energy Insiders Are Selling The Stock

The last three months saw some TMK Energy insider selling. Advisor to the Board Tsetsen Zantav divested only AU$43k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of TMK Energy

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 27% of TMK Energy shares, worth about AU$9.7m. 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 TMK Energy Tell Us?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. We're a little cautious about the insider selling at TMK Energy. But we do like the fact that insiders own a fair chunk of 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. Case in point: We've spotted 5 warning signs for TMK Energy you should be aware of, and 4 of them can't be ignored.

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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.