Have Insiders Sold Catalyst Metals Limited (ASX:CYL) Shares Recently?

By
Simply Wall St
Published
January 14, 2022
ASX:CYL
Source: Shutterstock

Investors may wish to note that the Non-Executive Chairman of Catalyst Metals Limited, Stephen Boston, recently netted AU$54k from selling stock, receiving an average price of AU$1.90. However we note that the sale only shrunk their holding by 4.0%.

View our latest analysis for Catalyst Metals

The Last 12 Months Of Insider Transactions At Catalyst Metals

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Robin Campbell Scrimgeour bought AU$118k worth of shares at a price of AU$1.98 per share. That means that an insider was happy to buy shares at above the current price of AU$1.92. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid AU$341k for 170.08k shares. But they sold 59.60k shares for AU$119k. In total, Catalyst Metals insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:CYL Insider Trading Volume January 14th 2022

Catalyst Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Catalyst Metals

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Catalyst Metals insiders own about AU$27m worth of shares. That equates to 14% 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.

What Might The Insider Transactions At Catalyst Metals Tell Us?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. Insiders own shares in Catalyst Metals and we see no evidence to suggest they are worried about the future. While we like knowing 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. Every company has risks, and we've spotted 3 warning signs for Catalyst Metals (of which 1 is a bit unpleasant!) you should know about.

But note: Catalyst 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, but not derivative transactions.

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