Executive Director Of Resolution Minerals Sold 28% Of Their Shares

We'd be surprised if Resolution Minerals Ltd (ASX:RML) shareholders haven't noticed that the Executive Director, Menachem Rogatsky, recently sold AU$169k worth of stock at AU$0.0099 per share. That sale was 28% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Resolution Minerals

The Last 12 Months Of Insider Transactions At Resolution Minerals

Notably, that recent sale by Menachem Rogatsky is the biggest insider sale of Resolution Minerals shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$0.01. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 only 28% of Menachem Rogatsky's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Resolution Minerals insiders own about AU$626k worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Resolution Minerals Tell Us?

An insider hasn't bought Resolution Minerals stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 6 warning signs for Resolution Minerals (5 make us uncomfortable!) that we believe deserve your full attention.

Of course Resolution Minerals 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.