Insiders Sold AU$862k Of Voltaic Strategic Resources Stock Possibly Sending Warning Sign

Despite the fact that Voltaic Strategic Resources Limited (ASX:VSR) stock rose 12% last week, insiders who sold AU$862k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of AU$0.05, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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.

See our latest analysis for Voltaic Strategic Resources

Voltaic Strategic Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jason Peterson, for AU$862k worth of shares, at about AU$0.05 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$0.014. So it may not tell us anything about how insiders feel about the current share price. Jason Peterson was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Voltaic Strategic Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Voltaic Strategic Resources Insiders Are Selling The Stock

The last three months saw significant insider selling at Voltaic Strategic Resources. Specifically, insider Jason Peterson ditched AU$862k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Voltaic Strategic Resources

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Voltaic Strategic Resources insiders own 16% of the company, worth about AU$1.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Voltaic Strategic Resources Insider Transactions Indicate?

An insider sold Voltaic Strategic Resources shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. For example, Voltaic Strategic Resources has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

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 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.