Vulcan Steel Insiders Sold NZ$2.7m Of Shares Suggesting Hesitancy

In the last year, many Vulcan Steel Limited (ASX:VSL) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Vulcan Steel Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Executive Director, Rhys Jones, sold AU$2.0m worth of shares at a price of AU$8.07 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$7.50. 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.

In the last twelve months insiders purchased 69.99k shares for AU$452k. But they sold 330.94k shares for AU$2.7m. Over the last year we saw more insider selling of Vulcan Steel shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Vulcan Steel

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Insiders At Vulcan Steel Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Vulcan Steel, over the last three months. In total, three insiders bought AU$393k worth of shares in that time. But we did see COO & Executive Director Adrian Casey sell shares worth AU$126k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Vulcan Steel Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Vulcan Steel insiders own about AU$373m worth of shares (which is 34% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Vulcan Steel Insiders?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Vulcan Steel insiders are fairly aligned, and optimistic. 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. When we did our research, we found 2 warning signs for Vulcan Steel (1 is significant!) that we believe deserve your full attention.

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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.