Insiders Sold AU$8.1m Of Cyprium Metals Stock Possibly Sending Warning Sign

Despite a 13% gain in Cyprium Metals Limited's (ASX:CYM) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell AU$8.1m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

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.

See our latest analysis for Cyprium Metals

Cyprium Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Adrian Martin, for AU$8.1m worth of shares, at about AU$0.06 per share. 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$0.044. So it may not shed much light on insider confidence at current levels. Adrian Martin was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$493k for 14.42m shares. On the other hand they divested 135.00m shares, for AU$8.1m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Cyprium Metals shares, worth about AU$7.0m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Cyprium Metals Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Cyprium Metals insiders. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Cyprium Metals has 6 warning signs (and 5 which shouldn't be ignored) we think you should know about.

Of course Cyprium Metals 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.