This Insider Has Just Sold Shares In Chalice Mining

We wouldn't blame Chalice Mining Limited (ASX:CHN) shareholders if they were a little worried about the fact that Timothy Rupert Goyder, a company insider, recently netted about AU$12m selling shares at an average price of AU$2.00. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Chalice Mining

In fact, the recent sale by insider Timothy Rupert Goyder was not their only sale of Chalice Mining shares this year. They previously made an even bigger sale of -AU$17m worth of shares at a price of AU$1.62 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$2.40. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 28% of Timothy Rupert Goyder's holding.

Timothy Rupert Goyder divested 17.68m shares over the last 12 months at an average price of AU$1.64. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Chalice Mining

I will like Chalice Mining 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.

Insider Ownership Of Chalice Mining

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Chalice Mining insiders own 10% of the company, worth about AU$96m. 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?

An insider sold Chalice Mining shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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 that end, you should learn about the 3 warning signs we've spotted with Chalice Mining (including 1 which is concerning).

Of course Chalice 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.