Cygnus Metals' Stock Sinks To AU$0.055, But Insiders Sold Even Lower

Cygnus Metals Limited's (ASX:CY5) value has fallen 14% in the last week, but insiders who sold AU$202k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.13 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Cygnus Metals

The Last 12 Months Of Insider Transactions At Cygnus Metals

The Non-Executive Director, Raymond Shorrocks, made the biggest insider sale in the last 12 months. That single transaction was for AU$202k worth of shares at a price of AU$0.13 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.055. 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 Raymond Shorrocks.

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!

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).

Does Cygnus Metals Boast High Insider Ownership?

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. Insiders own 26% of Cygnus Metals shares, worth about AU$5.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cygnus Metals Tell Us?

The fact that there have been no Cygnus Metals insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Cygnus Metals insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cygnus Metals. Case in point: We've spotted 5 warning signs for Cygnus Metals you should be aware of, and 2 of them are concerning.

But note: Cygnus 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com