Insiders may have sold GoviEx Uranium Inc. (CVE:GXU) early at US$0.33 per share, while current price continues to trade high at CA$0.34

GoviEx Uranium Inc.'s (CVE:GXU) stock price has dropped 11% in the previous week, but insiders who sold US$521k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$0.33 is still lower than the current share price.

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

View our latest analysis for GoviEx Uranium

GoviEx Uranium Insider Transactions Over The Last Year

The Independent Director, Christopher Wallace, made the biggest insider sale in the last 12 months. That single transaction was for CA$102k worth of shares at a price of CA$0.54 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.34. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in GoviEx Uranium than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like GoviEx Uranium better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

GoviEx Uranium Insiders Are Selling The Stock

The last three months saw some GoviEx Uranium insider selling. Independent Director David Cates sold just CA$52k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership of GoviEx Uranium

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. GoviEx Uranium insiders own about CA$23m worth of shares. That equates to 12% of the company. 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 Does This Data Suggest About GoviEx Uranium Insiders?

An insider hasn't bought GoviEx Uranium stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. To that end, you should learn about the 5 warning signs we've spotted with GoviEx Uranium (including 3 which are a bit unpleasant).

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, but not derivative transactions.

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