John Welborn Is The MD, CEO & Director of Resolute Mining Limited (ASX:RSG) And They Just Spent AU$549k On Shares

Potential Resolute Mining Limited (ASX:RSG) shareholders may wish to note that the MD, CEO & Director, John Welborn, recently bought AU$549k worth of stock, paying AU$1.61 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 12.8%.

See our latest analysis for Resolute Mining

Resolute Mining Insider Transactions Over The Last Year

Notably, that recent sale by MD, CEO & Director John Welborn was not the only time they sold Resolute Mining shares this year. They previously made an even bigger sale of -AU$3.0m worth of shares at a price of AU$1.61 per share. That means that an insider was selling shares at around the current price of AU$1.59. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of Resolute Mining shares, than buying. The average sell price was around AU$1.51. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Does Resolute Mining Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Resolute Mining insiders own about AU$15m worth of shares. That equates to 1.1% 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.

So What Do The Resolute Mining Insider Transactions Indicate?

The stark truth for Resolute Mining is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.