Insiders Could Have Profited By Holding onto AuKing Mining Shares Despite 20% Drop

AuKing Mining Limited's (ASX:AKN) stock price has dropped 20% in the previous week, but insiders who sold AU$900k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.10 is still below the current share price.

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.

Check out our latest analysis for AuKing Mining

The Last 12 Months Of Insider Transactions At AuKing Mining

In the last twelve months, the biggest single sale by an insider was when the insider, Zuliang Wei, sold AU$900k worth of shares at a price of AU$0.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.004). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Zuliang Wei.

Over the last year, we can see that insiders have bought 12.82m shares worth AU$172k. But they sold 9.00m shares for AU$900k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At AuKing Mining Have Bought Stock Recently

There was some insider buying at AuKing Mining over the last quarter. Insiders bought AU$36k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of AuKing Mining

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AuKing Mining insiders own 16% of the company, worth about AU$239k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About AuKing Mining Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. Our analysis of AuKing Mining insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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. While conducting our analysis, we found that AuKing Mining has 5 warning signs and it would be unwise to ignore them.

Of course AuKing Mining 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.