Keep An Eye On Cyprium Metals As Insider Stock Selling Hits AU$8.1m

Despite the fact that Cyprium Metals Limited (ASX:CYM) stock rose 15% last week, insiders who sold AU$8.1m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of AU$0.06, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Cyprium Metals

The Last 12 Months Of Insider Transactions At Cyprium Metals

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. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.03). So it is hard to draw any strong conclusion from it. Adrian Martin was the only individual insider to sell shares in the last twelve months. Notably Adrian Martin was also the biggest buyer, having purchased AU$239k worth of shares.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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. We usually like to see fairly high levels of insider ownership. Our data indicates that Cyprium Metals insiders own about AU$4.8m worth of shares (which is 11% of the company). 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. The insider transactions at Cyprium Metals are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cyprium Metals. Every company has risks, and we've spotted 5 warning signs for Cyprium Metals (of which 3 are significant!) 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.