Insider Spends AU$100k Buying More Shares In Chalice Mining

Even if it's not a huge purchase, we think it was good to see that Richard Hacker, the Non-Executive Director of Chalice Mining Limited (ASX:CHN) recently shelled out AU$100k to buy stock, at AU$1.66 per share. However, it only increased their shares held by 4.6%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Chalice Mining

In the last twelve months, the biggest single sale by an insider was when the insider, Timothy Rupert Goyder, sold AU$17m worth of shares at a price of AU$1.62 per share. That means that an insider was selling shares at around the current price of AU$1.59. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Timothy Rupert Goyder was the only individual insider to sell shares in the last twelve months.

Timothy Rupert Goyder divested 17.68m shares over the last 12 months at an average price of AU$1.64. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Chalice Mining

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Chalice Mining insiders own 7.4% of the company, worth about AU$46m. 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 Do The Chalice Mining Insider Transactions Indicate?

The stark truth for Chalice Mining is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Chalice Mining.

But note: Chalice Mining 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.