CanAlaska Uranium Insiders Made A Wise Decision By Selling CA$2.2m Worth Of Stock

While it’s been a great week for CanAlaska Uranium Ltd. (CVE:CVV) shareholders after stock gained 12%, they should consider it with a grain of salt. The fact that insiders chose to dispose of CA$2.2m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, 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 CanAlaska Uranium

The Non-Executive Director, Peter Dasler, made the biggest insider sale in the last 12 months. That single transaction was for CA$437k worth of shares at a price of CA$0.73 each. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$0.94. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 33% of Peter Dasler's stake.

In the last twelve months insiders purchased 235.00k shares for CA$181k. But insiders sold 2.87m shares worth CA$2.2m. In total, CanAlaska Uranium insiders sold more than they bought over the last year. 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 CanAlaska Uranium

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CanAlaska Uranium Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at CanAlaska Uranium. In total, insiders sold CA$767k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does CanAlaska Uranium Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that CanAlaska Uranium insiders own 5.6% of the company, worth about CA$9.0m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About CanAlaska Uranium Insiders?

Insiders sold CanAlaska Uranium shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! 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. Be aware that CanAlaska Uranium is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...

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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.