More Money In The Bank For Mindax Insiders Who Divested AU$7.7m

While Mindax Limited (ASX:MDX) shareholders have had a good week with the stock up 20%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell AU$7.7m worth of stock in the last year, which could indicate some expected downturn.

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.

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Mindax Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Andrew Tsang, for AU$7.6m worth of shares, at about AU$0.038 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.064. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 78% of Andrew Tsang's holding.

In the last year Mindax insiders didn't buy any company stock. 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!

View our latest analysis for Mindax

I will like Mindax better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Mindax

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mindax insiders own about AU$50m worth of shares. That equates to 33% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Mindax Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Mindax shares in the last quarter. Our analysis of Mindax insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mindax. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Mindax.

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 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.