Alkane Resources Non-Executive Director Ian Gandel Sells 45% Of Holding

We wouldn't blame Alkane Resources Ltd (ASX:ALK) shareholders if they were a little worried about the fact that Ian Gandel, the Non-Executive Director recently netted about AU$27m selling shares at an average price of AU$1.12. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Alkane Resources

In fact, the recent sale by Ian Gandel was the biggest sale of Alkane Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (AU$1.16). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 45% of Ian Gandel's stake.

Happily, we note that in the last year insiders paid AU$103k for 142.08k shares. But they sold 24.00m shares for AU$27m. 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!

See our latest analysis for Alkane Resources

I will like Alkane Resources 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.

Does Alkane Resources Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Alkane Resources insiders own about AU$68m worth of shares. That equates to 4.3% of the company. 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 Alkane Resources Insiders?

Unfortunately, there has been more insider selling of Alkane Resources stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Alkane Resources makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alkane Resources. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Alkane Resources.

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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.