Stock Analysis

Grange Resources Limited (ASX:GRR) insiders who sold AU$22m worth of stock earlier this year are probably glad they did so as market cap slides to AU$891m

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Over the past year, insiders sold AU$22m worth of Grange Resources Limited (ASX:GRR) stock at an average price of AU$1.03 per share allowing them to get the most out of their money. After the stock price dropped 14% last week, the company's market value declined by AU$145m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Grange Resources

Grange Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Cheung Ko, sold AU$20m worth of shares at a price of AU$1.17 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.77. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Cheung Ko.

Cheung Ko sold a total of 21.72m shares over the year at an average price of AU$1.03. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:GRR Insider Trading Volume March 15th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Grange Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.7% of Grange Resources shares, worth about AU$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Grange Resources Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Grange Resources insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Grange Resources you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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