Waratah Minerals Insider Lowered Holding By 100% During Last Year

Looking at Waratah Minerals Limited's (ASX:WTM ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Waratah Minerals

The Last 12 Months Of Insider Transactions At Waratah Minerals

Over the last year, we can see that the biggest insider sale was by the insider, Timothy Rupert Goyder, for AU$2.9m worth of shares, at about AU$0.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.32. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 100% of Timothy Rupert Goyder's holding. Timothy Rupert Goyder was the only individual insider to sell over the last year. Notably Timothy Rupert Goyder was also the biggest buyer, having purchased AU$544k worth of shares.

In the last twelve months insiders purchased 10.35m shares for AU$544k. But insiders sold 11.93m shares worth AU$3.6m. Timothy Rupert Goyder sold a total of 11.93m shares over the year at an average price of AU$0.30. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Waratah Minerals Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Waratah Minerals. Specifically, insider Timothy Rupert Goyder ditched AU$2.9m 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.

Does Waratah Minerals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Insiders own 7.2% of Waratah Minerals shares, worth about AU$4.5m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Waratah Minerals Insiders?

An insider hasn't bought Waratah Minerals stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Waratah Minerals. At Simply Wall St, we've found that Waratah Minerals has 5 warning signs (3 are concerning!) that deserve your attention before going any further with your analysis.

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.