Insiders Sold Sarytogan Graphite At AU$0.11, Meanwhile Stock Sits Near AU$0.057

Sarytogan Graphite Limited's (ASX:SGA) value has fallen 11% in the last week, but insiders who sold AU$760k worth of stock over the last year have had less success. The average selling price of AU$0.11 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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 Sarytogan Graphite

The Last 12 Months Of Insider Transactions At Sarytogan Graphite

In the last twelve months, the biggest single sale by an insider was when the Technical Director & Executive Director, Waldemar Mueller, sold AU$760k worth of shares at a price of AU$0.11 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$0.057. So it may not tell us anything about how insiders feel about the current share price. Waldemar Mueller was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Sarytogan Graphite Boast High 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. 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 Sarytogan Graphite insiders own 13% of the company, worth about AU$1.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Sarytogan Graphite Tell Us?

The fact that there have been no Sarytogan Graphite insider transactions recently certainly doesn't bother us. The insider transactions at Sarytogan Graphite are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sarytogan Graphite. At Simply Wall St, we found 3 warning signs for Sarytogan Graphite that deserve your attention before buying any shares.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.