This Lindian Resources Insider Reduced Their Stake By 23%

Insiders were net sellers of Lindian Resources Limited's (ASX:LIN ) stock during the past year. That is, insiders sold more stock than they bought.

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 Lindian Resources

Lindian Resources Insider Transactions Over The Last Year

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. That means that an insider was selling shares at slightly below the current price (AU$0.12). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 23% of Rohan Patnaik's stake. Rohan Patnaik was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 461.11k shares worth AU$70k. But they sold 18.50m shares for AU$2.1m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insiders At Lindian Resources Have Sold Stock Recently

The last three months saw significant insider selling at Lindian Resources. In total, insider Rohan Patnaik sold AU$2.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Lindian Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 33% of Lindian Resources shares, worth about AU$45m. 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?

An insider sold Lindian Resources shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Our analysis shows 5 warning signs for Lindian Resources (3 are significant!) and we strongly recommend you look at these before investing.

But note: Lindian Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.