Lindian Resources Insider Lowered Holding By 23% During Last Year

From what we can see, insiders were net sellers in Lindian Resources Limited's (ASX:LIN ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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.

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The Last 12 Months Of Insider Transactions At Lindian Resources

The insider, Rohan Patnaik, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.1m worth of shares at a price of AU$0.11 each. So what is clear is that an insider saw fit to sell at around the current price of AU$0.10. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Rohan Patnaik was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$135k for 1.50m shares. But insiders sold 21.57m shares worth AU$2.3m. Rohan Patnaik divested 21.57m shares over the last 12 months at an average price of AU$0.11. 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!

See our latest analysis for Lindian Resources

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Lindian Resources Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Lindian Resources. Not only was there no selling that we can see, but they collectively bought AU$135k worth of shares. This could be interpreted as suggesting a positive outlook.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Lindian Resources insiders own 28% of the company, worth about AU$35m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Lindian Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Lindian Resources insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Lindian Resources (3 are significant!) that we believe deserve your full attention.

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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.