Independent Director Of Energy Fuels Sold 25% Of Their Shares

Some Energy Fuels Inc. (TSE:EFR) shareholders may be a little concerned to see that the Independent Director, Alexander Morrison, recently sold a substantial CA$826k worth of stock at a price of CA$21.32 per share. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

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Energy Fuels Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Saleem Drera, for CA$4.1m worth of shares, at about CA$15.22 per share. That means that even when the share price was below the current price of CA$18.59, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was 99% of Saleem Drera's holding.

In the last twelve months insiders purchased 26.90k shares for CA$161k. On the other hand they divested 1.29m shares, for CA$18m. Over the last year we saw more insider selling of Energy Fuels shares, than buying. 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!

See our latest analysis for Energy Fuels

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Insider Ownership Of Energy Fuels

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.3% of Energy Fuels shares, worth about CA$68m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Energy Fuels Insider Transactions Indicate?

Insiders sold Energy Fuels shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Energy Fuels. For example - Energy Fuels has 3 warning signs we think you should be aware of.

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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.