Have Insiders Sold McChip Resources Shares Recently?

We note that the McChip Resources Inc. (CVE:MCS) Independent Director, Anthony Weldon, recently sold CA$78k worth of stock for CA$1.65 per share. On the bright side, that's just a small sale and only reduced their holding by 9.5%.

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The Last 12 Months Of Insider Transactions At McChip Resources

Notably, that recent sale by Anthony Weldon is the biggest insider sale of McChip Resources shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$1.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in McChip Resources didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for McChip Resources

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that McChip Resources insiders own 52% of the company, worth about CA$4.9m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The McChip Resources Insider Transactions Indicate?

Insiders haven't bought McChip Resources stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since McChip Resources is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 3 warning signs for McChip Resources (2 are a bit concerning!) that we believe deserve your full attention.

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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.