Mandalay Resources Lead Independent Director Abraham Jonker Sells 100% Of Holding

Anyone interested in Mandalay Resources Corporation (TSE:MND) should probably be aware that the Lead Independent Director, Abraham Jonker, recently divested CA$490k worth of shares in the company, at an average price of CA$2.60 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

See our latest analysis for Mandalay Resources

The Last 12 Months Of Insider Transactions At Mandalay Resources

In fact, the recent sale by Abraham Jonker was the biggest sale of Mandalay Resources shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of CA$2.54. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$4.7m worth of Mandalay Resources stock, about 2.0% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Mandalay Resources Insiders?

An insider hasn't bought Mandalay Resources stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Mandalay Resources you should be aware of.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com