Insiders Of CanAlaska Uranium Retain CA$1.4m Of Investment Selling At Higher Prices

While CanAlaska Uranium Ltd. (CVE:CVV) shareholders have enjoyed a good week with stock up 23%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell CA$1.4m worth of stock in the last year, which could indicate some expected downturn.

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

CanAlaska Uranium Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Peter Dasler, sold CA$437k worth of shares at a price of CA$0.73 per share. That means that even when the share price was below the current price of CA$0.85, 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. 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. It is worth noting that this sale was only 33% of Peter Dasler's holding.

In the last twelve months insiders purchased 254.00k shares for CA$192k. But they sold 1.90m shares for CA$1.4m. Over the last year we saw more insider selling of CanAlaska Uranium shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At CanAlaska Uranium Have Sold Stock Recently

We've seen more insider selling than insider buying at CanAlaska Uranium recently. In that time, insiders dumped CA$619k worth of shares. On the flip side, insiders spent CA$97k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

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. Insiders own 5.0% of CanAlaska Uranium shares, worth about CA$7.4m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About CanAlaska Uranium Insiders?

The insider sales have outweighed the insider buying, at CanAlaska Uranium, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. 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. When we did our research, we found 4 warning signs for CanAlaska Uranium (2 are concerning!) that we believe deserve your full attention.

But note: CanAlaska Uranium may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.