GreenTech Metals Falls To AU$0.20, But Insiders Sold At Lower Price

Despite the fact that GreenTech Metals Limited's (ASX:GRE) value has dropped 13% in the last week insiders who sold AU$667k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.53 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for GreenTech Metals

The Last 12 Months Of Insider Transactions At GreenTech Metals

The insider, Jason Peterson, made the biggest insider sale in the last 12 months. That single transaction was for AU$474k worth of shares at a price of AU$0.45 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.20. So it is hard to draw any strong conclusion from it. Jason Peterson was the only individual insider to sell shares in the last twelve months. Notably Jason Peterson was also the biggest buyer, having purchased AU$386k worth of shares.

Happily, we note that in the last year insiders paid AU$386k for 2.52m shares. But insiders sold 1.25m shares worth AU$667k. Jason Peterson sold a total of 1.25m shares over the year at an average price of AU$0.53. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Of GreenTech Metals

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. Our data indicates that GreenTech Metals insiders own about AU$1.2m worth of shares (which is 7.1% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At GreenTech Metals Tell Us?

The fact that there have been no GreenTech Metals insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by GreenTech Metals insiders. 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 GreenTech Metals. To help with this, we've discovered 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in GreenTech Metals.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.