Insiders In Strata Minerals Left Out From 23% Price Rise After Disposing Stock

Strata Minerals Limited's (ASX:SMX) stock rose 23% last week, but insiders who sold AU$218k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of AU$0.17, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Strata Minerals

The insider, Jason Peterson, made the biggest insider sale in the last 12 months. That single transaction was for AU$218k worth of shares at a price of AU$0.17 each. 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$0.037. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Jason Peterson. Notably Jason Peterson was also the biggest buyer, having purchased AU$194k worth of shares.

Happily, we note that in the last year insiders paid AU$194k for 6.60m shares. On the other hand they divested 1.29m shares, for AU$218k. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Strata Minerals

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of Strata Minerals shares, worth about AU$906k, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Strata Minerals Insider Transactions Indicate?

The fact that there have been no Strata Minerals insider transactions recently certainly doesn't bother us. Our analysis of Strata Minerals insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. In terms of investment risks, we've identified 5 warning signs with Strata Minerals and understanding these should be part of your investment process.

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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.