Have MetalsTech Insiders Been Selling Stock?

We wouldn't blame MetalsTech Limited (ASX:MTC) shareholders if they were a little worried about the fact that Rachel D'Anna, a company insider, recently netted about AU$1.9m selling shares at an average price of AU$0.48. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

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MetalsTech Insider Transactions Over The Last Year

Notably, that recent sale by Rachel D'Anna is the biggest insider sale of MetalsTech shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.24). So it may not shed much light on insider confidence at current levels.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for MetalsTech

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Does MetalsTech Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that MetalsTech insiders own 27% of the company, worth about AU$15m. 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 MetalsTech Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MetalsTech. Every company has risks, and we've spotted 3 warning signs for MetalsTech (of which 1 is potentially serious!) you should know about.

Of course MetalsTech may not be the best stock to buy. So you may wish to see this free collection of high quality 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.