Insiders who sold GoviEx Uranium Inc. (CVE:GXU) earlier this year probably made the right call as market cap dropped by CA$30m

Insiders at GoviEx Uranium Inc. (CVE:GXU) sold US$634k worth of stock at an average price of US$0.43 a share over the past year, making the most of their investment. After the stock price dropped 14% last week, the company's market value declined by CA$30m, but insiders were able to mitigate their losses.

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.

See our latest analysis for GoviEx Uranium

GoviEx Uranium Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, David Cates, sold CA$139k worth of shares at a price of CA$0.41 per share. 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$0.30. 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. The chart below shows insider transactions (by companies and individuals) over the last year. 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: insiders have been buying them).

Insiders at GoviEx Uranium Have Sold Stock Recently

The last quarter saw substantial insider selling of GoviEx Uranium shares. In total, insiders sold CA$393k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does GoviEx 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that GoviEx Uranium insiders own 11% of the company, worth about CA$20m. 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 Do The GoviEx Uranium Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. 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. While we like knowing 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. At Simply Wall St, we've found that GoviEx Uranium has 6 warning signs (3 make us uncomfortable!) that deserve your attention before going any further with your analysis.

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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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.