Insiders are probably glad they sold their shares in Ramelius Resources Limited (ASX:RMS) after 6.5% drop

Insiders seem to have made the most of their holdings by selling AU$301k worth of Ramelius Resources Limited (ASX:RMS) stock at an average sell price of AU$1.51 during the past year. The company's market valuation decreased by AU$87m after the stock price dropped 6.5% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ramelius Resources

The Last 12 Months Of Insider Transactions At Ramelius Resources

In the last twelve months, the biggest single sale by an insider was when the Independent Non-Executive Director, Michael Bohm, sold AU$301k worth of shares at a price of AU$1.51 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$1.44. While insider selling is a negative, to us, it is more negative if the shares are sold 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. Michael Bohm was the only individual insider to sell shares in the last twelve months.

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!

I will like Ramelius Resources better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at Ramelius Resources Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Ramelius Resources. In total, Independent Non-Executive Director Michael Bohm sold AU$301k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Ramelius Resources insiders own 1.1% of the company, worth about AU$13m. 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 Ramelius Resources 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. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ramelius Resources. For example - Ramelius Resources has 2 warning signs we think you should be aware of.

Of course Ramelius Resources 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, but not derivative transactions.

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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.