Insiders Sold American West Metals At AU$0.11, Meanwhile Stock Sits Near AU$0.033

Despite the fact that American West Metals Limited's (ASX:AW1) value has dropped 13% in the last week insiders who sold AU$302k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.11 is still below the current share price.

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 American West Metals

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, John Prineas, for AU$302k worth of shares, at about AU$0.11 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.033. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was John Prineas.

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 American West Metals

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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that American West Metals insiders own 14% of the company, worth about AU$3.5m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At American West Metals Tell Us?

It doesn't really mean much that no insider has traded American West Metals shares in the last quarter. We don't take much encouragement from the transactions by American West Metals insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American West Metals. Case in point: We've spotted 5 warning signs for American West Metals you should be aware of, and 3 of these are a bit unpleasant.

But note: American West Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.