Have Rox Resources Insiders Been Selling Stock?

We note that the Rox Resources Limited (ASX:RXL) Independent Non-Executive Chairman, Stephen Dennis, recently sold AU$153k worth of stock for AU$0.46 per share. It wasn't a huge sale, but it did reduce their holding by 14%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At Rox Resources

Notably, that recent sale by Stephen Dennis is the biggest insider sale of Rox Resources shares that we've seen in the last year. That means that even when the share price was below the current price of AU$0.47, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 14% of Stephen Dennis's holding.

Over the last year, we can see that insiders have bought 1.60m shares worth AU$241k. But insiders sold 330.89k shares worth AU$153k. In the last twelve months there was more buying than selling by Rox Resources insiders. 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!

View our latest analysis for Rox Resources

Rox Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Rox Resources 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. From our data, it seems that Rox Resources insiders own 4.2% of the company, worth about AU$15m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The Rox Resources Insider Transactions Indicate?

An insider sold Rox Resources shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Rox Resources (of which 2 are a bit concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.