After a 11% dip, insiders are undoubtedly glad they sold Entrée Resources Ltd. (TSE:ETG)

By
Simply Wall St
Published
May 12, 2022
TSX:ETG
Source: Shutterstock

Over the past year, insiders sold US$119k worth of Entrée Resources Ltd. (TSE:ETG) stock at an average price of US$0.96 per share allowing them to get the most out of their money. The company's market valuation decreased by CA$22m after the stock price dropped 11% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Entrée Resources

The Last 12 Months Of Insider Transactions At Entrée Resources

The Chief Financial Officer, Duane Lo, made the biggest insider sale in the last 12 months. That single transaction was for CA$67k worth of shares at a price of CA$1.00 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$0.87. So it may not tell us anything about how insiders feel about the current share price.

In total, Entrée Resources insiders sold more 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!

insider-trading-volume
TSX:ETG Insider Trading Volume May 12th 2022

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).

Does Entrée Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.0% of Entrée Resources shares, worth about CA$6.8m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Entrée Resources Tell Us?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. Recent sales exacerbate our caution arising from analysis of Entrée Resources insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Entrée Resources. To that end, you should learn about the 4 warning signs we've spotted with Entrée Resources (including 2 which are a bit concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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